Anglo-Eastern Plantations PLC, a major producer of palm oil and rubber with plantations across Indonesia and Malaysia, has announced its interim results for the six months ended 30 June 2024. The financial highlights include a revenue of $166.7 million, a 4% decrease from the same period in 2023, and a profit before tax after biological assets movement of $35.2 million, representing an 8.6% increase from the previous year.
The increase in profit was attributed to reduced manuring costs due to cheaper fertiliser prices and an increase in the value of biological assets. However, the FFB production for the first half of 2024 was 5% lower at 494,900 mt compared to the same period in 2023, primarily due to lower FFB yield from old-matured trees in Bengkulu region, Sumatera, earmarked for replanting.
The Group's gross profit margin increased to 21.8% from 19.2% compared to the same period last year, mainly due to lower fertiliser prices and an increase in the fair value of biological assets. The average ex-Rotterdam CPO price for the first six months of 2024 was $1,018/mt, 3% higher than the same period in 2023. The profit after tax for the six months ended 30 June 2024 was 15.8% higher at $27.9 million, compared to the same period in 2023.
The Group's Balance Sheet remains strong with no outstanding bank loans, and net assets as of 30 June 2024 were $519.7 million. The Group's cash and cash equivalents, including short-term investments, were $150.8 million as of 30 June 2024. The reduction in cash and cash equivalents since the beginning of 2024 was due to cash allocated for investments, capital expenditure, and loss in foreign currency exchange.
In conclusion, the interim results for the six months ended 30 June 2024 reflect a mixed performance for Anglo-Eastern Plantations PLC, with a decrease in revenue but an increase in profit before tax, driven by various factors affecting FFB production, gross profit margin, and average CPO prices. The Group's strong Balance Sheet and cash position provide a solid foundation for future operations and investments.