Unveiling Golden Agri Resources’ financial resilience

Golden Agri Resources, a significant player in the palm oil industry, achieved a remarkable feat in 2022, earning a record-breaking net profit of $782 million, thanks to their shrewd business strategy. By offering a diverse range of products such as specialty fats and biodiesel and having storage facilities globally, they continued to serve their international clientele during Indonesia's palm oil export ban.

In 2022, the cost of crude palm oil (CPO) reached an unprecedented peak of $1,800 per tonne, driven by multiple factors, including the export ban and the Ukrainian war. Though the price dropped in the second half of the year, it remained significantly above average. Golden Agri Resources foresees this trend continuing. The company's efficient logistics enabled them to overcome the challenges posed by the pandemic and the war.

Going forward, Golden Agri Resources plans to maintain their current business strategy of manufacturing high-quality products and marketing them worldwide. Their primary goal is to enhance their products to meet their customers' demands, using technology to achieve this. They are also devoted to implementing sustainable approaches such as replacing old plantations with new crops to increase oil production from the same land. Finally, the company remains optimistic about China's opening up and the expected rise in oil consumption, which they believe will sustain high CPO prices.

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