First Resources EB5 has delivered its best financial performance during the FY2022 ended Dec 31, 2022 since its listing on December 2007. The record performance were driven by average selling prices (ASPs) during the year, says the group.
For the 2HFY2022, First Resources reported earnings of US$197.2 million ($265.9 million), 53.4% higher y-o-y as profit from operations rose from a combination of higher ASPs and sales volumes.
The group’s FY2022 earnings came up to US$325.2 million, 101.8% higher y-o-y, due to the stronger ASPs and offset by lower sales volumes.
Earnings per share (EPS) stood at 12.54 US cents and 20.65 US cents for the 2HFY2022 and FY2022 respectively.
During the FY2022, total revenue grew by 18.7% y-o-y to a record US$1.23 billion due to the higher ASPs. All segments and geographical markets registered y-o-y growths.
Gross profit increased by 36.3% y-o-y to US$629.3 million with gross profit margin (GPM) increasing by 6.7 percentage points y-o-y to 51.4%.
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There was a loss of US$11.5 million arising from changes in fair value of biological assets, down from the gain of US$16.0 million in the FY2021. The fair value loss recorded in FY2022 was mainly attributable to the lower domestic fresh fruit bunch (FFB) prices used in the valuation as compared to the previous year.
Total ebitda increased by 62.6% y-o-y to US$508.8 million.
The group also saw an operating loss of US$4.6 billion, down from the gain of US$8.3 million.
In the FY2022, the group registered a gain of US$15.2 million on foreign exchange (forex), up 27.1 times from the gain of US$266,000 in the FY2021. This was mainly from the impact of foreign currency movements on monetary assets and liabilities of the subsidiaries.
As at Dec 31, 2022, cash and cash equivalents stood at US$433.8 million.
A final ordinary dividend of 12 cents has been declared, bringing the year’s total dividend to 14.5 cents. This is more than two times higher than the total dividend of 6.35 cents.
“Palm oil prices touched new highs in the first half of 2022, owing to the tightening of global vegetable oil supplies from the Russia-Ukraine war and Indonesia’s temporary export ban,” says CEO Ciliandra Fangiono.
“While crude palm oil (CPO) prices have since moderated following the lifting of the export ban mid last year, the government’s ongoing measures to ensure the affordability and sufficiency of cooking oil within Indonesia has continued to restrict the availability of global palm oil supplies in recent months. On the demand front, Indonesia’s higher B35 biodiesel mandate in 2023 should remain supportive of domestic palm oil consumption demand in the year ahead,” he adds.
In his statement, Fangiono notes that the group remains “cautiously optimistic” that its performance will remain “strong” in the FY2023. That said, the group is also expecting its ASPs and profitability to moderate in the near-term due to the high base effect from the record high palm oil prices seen in 2022.
“Amid the global market uncertainties, the Group will closely monitor developments in the regulatory and macro environment, including the geopolitical situation in the Black Sea and the reopening of China, which will exert an influence on the direction of palm oil prices going forward,” he says.
As at 10.12am, shares in First Resources are trading 5 cents higher or 3.25% up at $1.59.
