Golden Agri-Resources Ltd (GAR) has reported a 47% year-on-year increase in net profit for the first quarter of 2025, reaching $55m. This surge is attributed to enhanced plantation output and a 27% rise in crude palm oil (CPO) prices, which averaged $1,156 per tonne. Despite a competitive market environment affecting downstream sales, GAR’s revenue grew by 19% to $3.04b.
The company’s EBITDA rose by 12% to $259m, maintaining a margin of 8.5%. Underlying profit also saw an increase, climbing to $89m. The reduction in foreign exchange loss further bolstered the net profit figures. GAR’s financial health remains robust, with an improved gearing ratio of 0.65 times and a net debt to EBITDA ratio of 0.41 times.
GAR’s upstream palm product output increased by 11% to 658,000 tonnes, whilst downstream sales volume decreased by 5% due to global economic conditions. The company continues to focus on enhancing plantation productivity and developing higher value-added products to sustain long-term growth.
In terms of sustainability, GAR is advancing its decarbonisation efforts, aligning with its Net Zero 2050 ambition. The company is also enhancing its supply chain traceability with the blockchain-powered SmartTrace system, aiding compliance with regulations like the EU Deforestation Regulation.
Looking ahead, GAR Chairman and CEO Franky O. Widjaja noted the potential easing of global vegetable oil supply constraints, despite challenges from weather patterns and geopolitical tensions. The company remains vigilant in observing market dynamics and macroeconomic conditions that could influence future trends.
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