Anglo-Eastern Plantations PLC has released its interim results for the six months ended 30 June 2023. The company, a major producer of palm oil and rubber with plantations in Indonesia and Malaysia, reported a decrease in revenue from continuing operations to $173.4 million, down 30% from $249.2 million in the same period in 2022. Gross profit from continuing operations was $33.2 million, compared to $90.3 million in the first six months of 2022. Overall profit before tax, after biological assets movement, was $32.5 million, a 64% decrease from $89.5 million in the corresponding period in 2022.
The lower profit was mainly attributed to lower Crude Palm Oil (CPO) prices and lower crop productions in Bengkulu and North Sumatra, as well as lower third-party crops. Fresh Fruit Bunches (FFB) production from continuing operations was 5% lower at 522,700mt compared to 550,800mt in the previous year, primarily due to lower production in Bengkulu and North Sumatera regions. Bought-in crops for the first half of 2023 decreased by 10% to 501,400mt from 557,600mt in the same period last year.
The company experienced a decrease in gross profit margin from continuing operations, which decreased to 19.2% from 36.2% due to lower CPO and palm kernel prices. CPO price ex-Rotterdam averaged $991/mt for the first six months of 2023, a 40% decrease from $1,640/mt in the same period in 2022. Palm kernel prices were also lower by 55% at an average price of $361/mt compared to $808/mt in the same period last year.
Profit after tax from continuing operations for the six months ended 30 June 2023 was 65% lower at $24.1 million, compared to $68.8 million in the first six months of 2022. The resulting basic earnings per share from continuing operations for the period was 50.73 cents.
The company's balance sheet remains strong with no outstanding bank loans. Net assets as of 30 June 2023 were $605.5 million, compared to $585.3 million as of 30 June 2022. The Group had cash and cash equivalents including short-term investments of $261.3 million as of 30 June 2023.
Operating costs for the Indonesian operations were lower in the first half of 2023 compared to the same period in 2022, mainly due to lower volume and prices paid for third-party crops.