Golden Agri-Resources: A Second Half Surge Drives Robust 2024 Performance

Golden Agri-Resources Ltd (GAR) has released its financial results for the second half and full year ended 31 December 2023, showcasing a robust performance driven by a strong recovery in the second half of the year. The company's strategic focus on margin optimization has been instrumental in fortifying its cash flow resilience and maintaining a robust balance sheet.

GAR achieved a record sales volume of 11.9 million tonnes in 2024, supporting a 12% growth in revenue to US$10.9 billion. Stronger sales, together with higher CPO prices, combined to offset the impact of lower plantation output. EBITDA for the year increased by 12% to US$1.1 billion, preserving a healthy margin of 10%. Underlying profit grew by 27% year-on-year to US$416 million, while net profit increased to US$365 million.



GAR's upstream business, which consists of plantations and palm oil mills, contributed significantly to the company's consolidated EBITDA. The segment's EBITDA grew by 19% to US$567 million, resulting in a strong margin of 26.1%. This was primarily supported by higher CPO prices, which grew from US$901 per tonne in 2023 to US$1,005 per tonne in 2024.

The company's downstream segment, which includes processing and merchandising palm and oilseed-based products, remained resilient in 2024 despite an unfavorable market environment. Sales volume expanded by 6% to 11.5 million tonnes, generating revenue of US$10.8 billion. EBITDA for this segment increased by 5% to US$534 million with a lower margin of 4.9% as a result of reduced refining margins. GAR continues to strengthen its competitive edge by pursuing higher value-added products to drive long-term growth.

GAR's Board has proposed a final dividend of 0.804 Singapore cents per share, totalling approximately US$75 million, in line with its balanced approach to rewarding shareholders while maintaining a strong balance sheet to insure against anticipated global challenges. This represents 18% of underlying profit and a 31% increase from the previous year.

In conclusion, Golden Agri-Resources' strategic focus on margin optimization has driven a robust performance in 2024, with a strong recovery in the second half of the year. The company's upstream and downstream businesses have both contributed to the company's overall growth, with higher CPO prices and increased sales volume driving revenue and EBITDA growth. GAR's commitment to sustainability and innovation has further strengthened its competitive edge, ensuring future growth and resilience in the dynamic palm oil industry.