Golden Agri-Resources first-quarter revenue at US$3.23 billion, profit at US$44 million on stronger downstream sales

SGX Filings05-15

Golden Agri-Resources Ltd (GAR) posted a net profit attributable to shareholders of US$44 million for the three months ended Mar 31, 2026, down 20 per cent year-on-year, as weaker upstream contributions offset higher trading volumes in its downstream operations.

Revenue rose 6 per cent year-on-year to US$3.23 billion, supported by expanded merchandising activity despite a 2 per cent decline in the average realised crude palm oil (CPO) price to US$1,136 a tonne. No dividend was declared for the quarter.

The gross profit margin narrowed slightly to 13.9 per cent, with gross profit increasing 4 per cent to US$450 million. Earnings before interest, tax, depreciation and amortisation slipped 7 per cent to US$241 million, translating to an EBITDA margin of 7.5 per cent. Underlying profit, which strips out biological-asset revaluation, foreign-exchange movements and deferred tax effects, fell 43 per cent to US$50 million.

Upstream performance weakened as palm product output (CPO and palm kernel) fell 10 per cent to 592,000 tonnes, a drop the company attributed to replanting preparations and fewer harvesting days during Indonesia’s March festive period. By contrast, downstream sales volumes gained 2 per cent to 2.81 million tonnes, helping cushion the impact of softer commodity prices.

GAR ended the quarter with a gearing ratio of 0.55 times and net debt of US$298 million, equivalent to 0.24 times EBITDA for the last four quarters. Total assets stood at US$10.91 billion while cash and short-term investments amounted to US$1.12 billion.

Looking ahead, management said it will continue expanding its portfolio of higher value-added palm-based products and maintain vigilance over potential fire risks during an expected stronger-than-usual dry season linked to El Niño conditions. The group has reinforced its fire-prevention measures, including community programmes and new detection technologies, and will monitor supply-chain disruptions and input-cost volatility amid elevated global energy prices and tight vegetable-oil supplies.

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