Golden Agri stock holds value as palm oil producer leans on higher FY2023 profit

Golden Agri-Resources Ltd. (ISIN SG1E55858209) delivered higher profitability in fiscal 2023, with investors in Golden Agri stock watching how improved earnings interact with volatile palm oil prices and the group’s Singapore Exchange listing backdrop.

FY2023 profit up to around $450 million

According to the company’s full year 2023 results published on its investor relations site, Golden Agri-Resources reported net profit attributable to owners of approximately $450 million in FY2023, compared with about $390 million in FY2022, marking an increase of roughly $60 million year on year.

In the same FY2023 report, revenue reached roughly $10.8 billion, easing from around $11.7 billion in FY2022 as average realized crude palm oil prices came down, while the stronger net profit reflected better underlying operational margins and cost control across the group’s plantations and downstream activities.

Revenue eases as palm oil prices normalize

The FY2023 revenue figure of about $10.8 billion represented a decline of roughly 7.7 percent from the approximately $11.7 billion posted in FY2022, illustrating how the normalization in crude palm oil prices after earlier peaks fed through to the top line even as the business remained profitable.

Golden Agri-Resources also reported that its underlying earnings before interest, tax, depreciation, and amortization in FY2023 remained above the billion-dollar mark in dollar terms, underpinned by continued high utilization of its refining and processing assets and contributions from its palm plantations in Indonesia.

Palm oil products support scale

Golden Agri-Resources generates its revenue from an integrated portfolio of palm oil activities, ranging from upstream plantation operations to downstream refining and the production of consumer and industrial products. This gives the group scale and the ability to market crude palm oil, refined palm oil, and derivative products into key end markets in Asia and beyond.

Golden Agri stock and listing context

Golden Agri-Resources shares are listed on the Singapore Exchange and provide international investors exposure to one of the larger integrated palm oil groups in the region.