SGX-listed GAR’s net profit down 51% in Q1 due to normalised CPO prices

Despite the softened results, the firm said it stayed resilient.

Golden Agri-Resources reported a net profit of US$92m in the first quarter (Q1) of 2023, falling 51% year-on-year from US$188m in Q1 2022.

The normalisation of the crude oil prices impacted financial earnings of GAR during the quarter.

"CPO market price (FOB Belawan) for the quarter dropped by 37 percent year-on-year, averaging US$990 per tonne compared to US$1,579 per tonne during the same period last year," read the statement released to the media.

Its revenue also fell 6% YoY to US$2.54b, with sales volume mitigating the lower ASPs.

The EBITDA stood at US$247m, maintaining a resilient margin of 9.7% whilst underlying profit and net profit came in lower at US$112m and US$92m, respectively.

GAR said it maintained its resilience amidst lower CPO prices.

"The plantation business experienced a decrease in output and higher fertiliser costs, which was partly compensated by the higher merchandising volume of the downstream business, a testament to the ability of GAR’s integrated business model to mitigate the impact of volatile markets," it said.