- GAR’s revenue reached a first-half record high of US$6.2 billion, supported by a 19% increase in crude palm oil (CPO) market prices
- 1H 2025 EBITDA grew 14% year-on-year to US$566 million, accompanied by over 56% growth in Net Profit
- Integrated agribusiness model continues to provide security and consistency in spite of changeable market conditions.
SINGAPORE, Aug. 14, 2025 /PRNewswire/ — Golden Agri-Resources Ltd (“GAR” or the “Company”) achieved record high first-half revenue, generating US$6.2 billion, supported by 19% increase in crude palm oil (CPO) market prices (FOB Belawan). Higher plantation output allowed the Company to capitalise on stronger CPO prices, while offsetting reduced sales volumes.
EBITDA for the first half of 2025 grew 14% year-on-year, reaching US$566 million at a margin of 9.2%, driven by higher plantation output and stronger CPO prices. Underlying profit increased by 23% to US$232 million, while net profit was buoyed by lower interest expenses and reduced foreign exchange loss to reach US$160 million, up 56% compared to the same period last year.
Prudent financial management and strong financial results contribute to the Company’s healthy balance sheet, reflected by decreases in both gearing ratio and net debt to EBITDA to 0.61 times and 0.22 times respectively.
On the outlook, Mr. Franky O. Widjaja, GAR Chairman and Chief Executive Officer shared: “Favourable weather conditions have helped Indonesian palm oil to continue its recovery in 2025, in line with global vegetable oil supply trends. Although global economic growth is slowing down, we see gradual improvement in palm oil demand, driven by staple food consumption and smooth implementation of the B40 biodiesel policy. Nonetheless, we continue to anticipate factors that may influence price trends and trade flows, including global geopolitical tensions and changing trade tariffs.”
SEGMENTAL PERFORMANCE
Plantations and palm oil mills (Upstream)
GAR’s yield intensification efforts, coupled with favourable weather conditions, contributed to 9% growth in fresh fruit bunch (FFB) productivity. FFB yield reached 8.8 tonnes per hectare, generating a total of 4.4 million tonnes of FFB. Favourable weather conditions and a higher proportion of mature trees on the Company’s estates supported this growth, even as GAR continued to prepare land for replanting. Palm product output also rose by 9% year-on-year to 1.3 million tonnes.
A combination of higher plantation output and appreciation in CPO prices translated to a strong 51% growth in EBITDA for this segment to US$320 million, at a margin of 27%.
Palm, laurics and others (Downstream)
GAR’s downstream segment consists of processing and merchandising palm and oilseed-based products including bulk and branded products, oleochemicals, sugar and other vegetable oils.
GAR remained resilient despite competitive market conditions. A 2% dip in sales volume to 5.6 million tonnes was mitigated by robust growth in average selling prices, expanding first-half revenue by 20% to US$6.1 billion.
EBITDA for this segment decreased by 13% to US$246 million, with a lower margin of 4% as a result of weaker refining margins. GAR continues to strengthen its competitive edge by enhancing the value proposition of its products and maintaining strong relationships with destination customers to optimise margins.
ADVANCING SUSTAINABILITY AMBITIONS
GAR’s value offering is underpinned by robust commitments to responsible sourcing and production. In the first half of 2025, the Company announced the evolution of its sustainability commitments, Collective for Impact, which embeds ESG into core business operations. Under the pillars of Sourcing Responsibly, Caring for Our Planet, and Empowering People, GAR has established time-bound, science-based targets to achieve these goals. Progress is reported in the Company’s annual Sustainability Report.
Notable progress in the first half of this year includes publication of a new Responsible Agri-Commodity Sourcing Policy covering commodities beyond palm. Additionally, GAR has deepened its partnership efforts to enhance social and environmental impact, extending community programmes to improve food security, stunting prevention, and early childhood education in its operational areas, and enhancing research into climate resilience.
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SOURCE Golden Agri-Resources
