For the first nine months of 2011, EBITDA reached US$761
million and net profit hit US$520 million, with 80% and 105%
increases, respectively
Nine months performance of palm products output and average
CPO prices were at historical high
US$'million | Nine months ended 30 Sep | Change | Quarter ended 30 Sep | Change | ||
US$'million | 2011 (9M 2011) | 2010 (9M 2010) | Change | 2011 (3Q 2011) | 2010 (3Q 2010) | Change |
Revenue | 4,625 | 2,315 | 100% | 1,562 | 965 | 62% |
Gross Profit | 1,450 | 567 | 156% | 422 | 225 | 87% |
EBITDA1 | 761 | 424 | 80% | 200 | 163 | 23% |
Net profit attributable to owners of the Company | 520 | 254 | 105% | 110 | 99 | 11% |
Earnings per Share (US$) | 0.043 | 0.021 | 105% | 0.009 | 0.008 | 11% |
GAR, the largest palm oil plantation company in Indonesia and the second largest in the world, achieved year-to-date EBITDA of US$761 million, 80% higher than last year. Net profit was recorded at US$520 million, more than double last year's result. The commendable performance was underpinned by the recovery of palm products output by 24% year-on-year, as well as stronger CPO FOB prices by 41% year-on- year.
1 Earnings before tax, non-controlling interests, interest on borrowings, depreciation and amortisation, net gain from changes in fair value of biological assets, foreign exchange gain/(loss), exceptional items and share of results of associated companies
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The strong recovery of production was sustained in the third
quarter and combined with stronger year-on-year CPO prices
resulted in 3Q 2011 EBITDA increasing by
23% to US$200 million, and net profit of US$110 million or an
11% year-on-year increase.
GAR's financial position as at 30 September 2011 continued to
be healthy, supported by robust cash flows and a low gearing
ratio of 0.09 times. Total assets grew by 9% to US$11 billion
compared to US$10.1 billion at the end of 2010, while total
liabilities stood at US$3.7 billion.
Supported by favourable weather conditions and expanded
mature area by 27,700 hectares, GAR has been able to sustain
its production growth. Palm products output for the
nine-month period of 2011 increased by 24% to 1.94 million
tonnes. For 3Q
2011, palm products output achieved 687,000 tonnes, 6%
stronger quarter-on-quarter and 13% higher year-on-year.
GAR's total planted area as at end of September 2011 was
448,900 hectares, which continues to be the largest in
Indonesia. The average age of GAR's plantations stood at 12
years, comprising 33% of immature and young age plantations,
and 44% of trees in their prime producing years. With this
favourable age profile, GAR is optimistic about sustaining
its production growth in the near to medium term. GAR will
continue its strategy to sustainably expand its oil palm
plantation area in order to maintain its long-term
growth.
GAR also continued to work relentlessly on improving its
already high yields. Despite having a larger percentage of
trees with a young age profile compared to September
2010, its fresh fruit bunch yield surged to 15.9 tonnes per
hectare in 9M 2011 from
14.3 tonnes per hectare a year ago. The palm products yield
was at a creditable 4.5 tonnes per hectare, an improvement
from the 3.9 tonnes per hectare in 9M 2010.
GAR continues to observe that the fundamentals of palm oil industry are strong. This is because the demand for palm oil is predominantly for food products, which is expected to be well-supported into the medium to long term by the increasing consumption particularly from the growing middle class in the major developing economies such as China and India. Additionally, stronger support for palm oil consumption comes from demand from alternative uses of palm oil and switching demand from higher prices of substitutes, where demand from biodiesel acts as a floor to CPO price.
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Mr Franky Widjaja, Chairman and Chief Executive Officer of
GAR commented: "The Board is pleased with GAR's record
performance for the nine-month period of 2011. We are well
positioned to benefit from the strong fundamentals of the
palm oil industry. We will prudently execute our strategy in
growing our business while capitalising on our superior
plantation management as well as research and development
efforts to maintain both cost leadership and commitment to
the most stringent sustainability standards. In recent
months, GAR has also made good progress in the area of
sustainability when it obtained its first RSPO (Roundtable on
Sustainable Palm Oil) certification, and also the resumption
of business relationships with Nestle and Unilever. We will
continue to work on our sustainability initiatives to become
the leader in sustainable palm oil production."
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GAR is the world's second largest palm oil plantation company with a total planted area of
448,900 hectares (including smallholders) as at 30 September 2011, located in Indonesia. It has integrated operations focused on the production of palm-based edible oil and fat.
Founded in 1996, GAR is listed on the Singapore Exchange since 1999 with a market capitalisation of US$5.8 billion as at 30 September 2011. Flambo International Ltd, an investment company, is GAR's largest shareholder, with a 50% stake. GAR has several subsidiaries, including PT SMART Tbk which is listed on the Indonesia Stock Exchange since
1992.
GAR is focused on sustainable palm oil production. In Indonesia, its primary activities include cultivating and harvesting of oil palm trees; processing of fresh fruit bunch into crude palm oil ("CPO") and palm kernel; and refining CPO into value-added products such as cooking oil, margarine and shortening. It also has integrated operations in China including a deep-sea port, oilseeds crushing plants, production capabilities for refined edible oil products as well as other food products such as noodles.
For media enquiries, please contact:
Claire Yong / Ang Shih-Huei Pelham Bell Pottinger Asia Tel: (65) 6333 3449
Fax: (65) 6333 3446
Cell: (65) 9185 0761 / (65) 9189 1039
Email: cyong@pbp.asia/ sang@pbp.asia
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