In the 1QFY2023, sales revenue fell by 34.7% y-o-y to US$198.2 million while ebitda fell by 55.3% y-o-y to US$55.1 million. Overall sales volumes in 1QFY2023 were also impacted by a net inventory build-up of 19,000 tonnes and lower production volumes.
First Resources (SGX:EB5
) has reported a net profit of US$19.3 million ($25.7 million) for the 1QFY2023 ended March 31, 73.8% lower y-o-y, as the record high palm oil prices seen in 2022 moderated from a high base effect. Palm oil prices had lowered since the middle of 2022 and have been “restrained” by the weakening prices of vegetable oils amid ample world supplies and the extension of the Black Sea Grain Initiative in March. As such, the group’s average selling prices (ASPs) and profitability also moderated for the period.
The lower net profit was due to a loss of foreign exchange (forex) from the appreciation of the Indonesian rupiah (IDR) against the US dollar (USD).
