Golden Agri-Resources Reports Record Revenue Amid Market Challenges

Golden Agri-Resources Ltd (GAR) announced a strong financial performance for the full year of 2025, reporting record revenue of US$12.95 billion. The increase was driven by both market price appreciation and volume growth, despite facing various economic uncertainties. Chairman and Chief Executive Officer Franky O. Widjaja expressed satisfaction with the results, noting the company’s resilience in a challenging environment.

GAR’s revenue increased by 19% compared to the previous year, supported by higher sales volumes and improved market prices. The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 14% to reach US$1.26 billion, maintaining a solid margin of 9.7%. Net profit saw a 10% increase, amounting to US$400 million, although it was impacted by a significant drop in foreign exchange gains from US$42 million in 2024 to only US$2 million this year.

Future Outlook and Dividend Proposal

Looking ahead, Widjaja emphasized the ongoing strength of palm oil demand, which has remained robust despite economic challenges. He noted the sector’s resilience, with prices for palm oil staying competitive against other vegetable oils. Long-term demand is expected to be driven by factors such as global population growth, increasing GDP per capita, and renewable energy requirements, particularly in the biodiesel sector in Indonesia.

To reward shareholders, GAR’s Board has proposed a final dividend of 0.952 Singapore cents per share, reflecting an 18% increase from the previous year. This proposed dividend totals approximately US$94 million and represents 18% of underlying profit, with a payout ratio of 23% on net profit. The dividend is set to be distributed on 20 May 2026, pending approval at GAR’s annual meeting.

Segment Performance and Sustainability Initiatives

In terms of segment performance, GAR’s upstream operations, including plantations and palm oil mills, reported a planted area of 531,000 hectares at the end of 2025, slightly down from 2024 due to replanting initiatives. The company rejuvenated 16,800 hectares of older plantations with next-generation planting materials, aiming to enhance productivity. The fruit yield increased by 13% in the second half of the year, reaching 9.9 tonnes per hectare, contributing to a full-year yield of 19.0 tonnes per hectare.

This increase in production led to a total fruit output of 9.2 million tonnes, with palm product output growing by 2% to 2.8 million tonnes. As a result, upstream EBITDA climbed by 25% to US$709 million, enhancing its contribution to consolidated EBITDA to 56%.

The downstream segment, which includes processing and merchandising palm and oilseed-based products, also performed well. GAR achieved record revenue of US$12.8 billion and a 3% increase in sales volume, totaling 11.9 million tonnes. Although EBITDA in this segment rose to US$550 million, the margin narrowed to 4.3%.

In line with its sustainability goals, GAR made significant strides in 2025. The company achieved full traceability to the mill for its palm, soybean, sugar, sunflower, and coconut supply chains. It also launched the Responsible Agri-Commodity Sourcing Policy for non-palm products. GAR expanded its smallholder program, Sawit Terampil, to engage 11,250 smallholders, assisting over 1,095 participants in obtaining RSPO certification.

Furthering its sustainability efforts, GAR added three methane capture plants, bringing the total to eleven in its upstream operations. The construction of a 110-tph steam biomass boiler commenced, utilizing palm kernel meal pellets produced from its operations, promoting circular resource use. The introduction of the drought-tolerant seed DxP Dami Mas MTK, approved by Indonesia’s Ministry of Agriculture, aims to enhance resilience in the face of climate change.

GAR also focused on community development, reaching 182 villages through 280 community projects, and supporting 163 Micro, Small and Medium Enterprises as part of its Bright Future Initiative. The company conducted gender equality assessments and workers’ voice surveys in its Indonesian operations to align with international labor standards and responsible sourcing expectations.

Overall, GAR’s performance reflects both its commitment to growth and sustainability, positioning the company favorably amid ongoing market challenges.