Annual results of the SIPEF group per 31 December 2024
Solid performance for the SIPEF group, anticipating a strong 2025
-
In 2024, palm oil prices remained historically favorable, averaging USD 906 (MYR 4 128) on the MDEX (Malaysian palm oil futures), driven by reduced supply due to decline in palm oil production in Indonesia and limited growth in Malaysia, relatively strong global demand, and geopolitical challenges impacting trade flows.
-
In 2024, the Group recorded an average ex-mill-gate selling price2 of USD 867 per tonne for its CPO, marking an increase of 4.4% from USD 830 in the prior year. The second half of the year saw particularly strong pricing, with average ex-mill gate selling prices reaching approximately USD 975 per tonne in the final two months.
-
SIPEF’s palm oil production declined by 7.4% in 2024, impacted by the volcanic eruption in Papua New Guinea in November 2023. Additionally, dry weather conditions in late 2023 and a cyclical downturn affected crop levels in Indonesia.
-
The net recurring result (share of the group, after tax) amounted to KUSD 71 913, slightly exceeding initial guidance. Total net profit (share of the group, after tax) amounted to KUSD 65 838.
-
This translates into a net profit per share of USD 6.33, while operational cash flow reached KUSD 133 043 or USD 12.79 per share.
-
SIPEF has a limited debt at year-end 2024, with a net financial position of KUSD -18 087, following significant investments of KUSD 86 858, primarily allocated to the South Sumatra expansion and mill upgrading programs. These investments will support growth in 2025.
-
The Board of Directors proposes to pay a dividend of EUR 2.00, on 2 July 2025, in line with the 30% payout ratio of previous years.
-
In 2024, Musi Rawas fresh fruit bunch (FFB) production rose by 21.4%, with South Sumatra's planted area expanding to 30 052 hectares, accounting for nearly a quarter of SIPEF's palm oil production in Indonesia. The Agro Muara Rupit mill, commissioned in June 2024, added a processing capacity of 45 tonnes per hour, further supporting the region's growth.
-
In Papua New Guinea, the volcanic-affected areas have been fully rehabilitated, and despite a 22.1% decline in palm oil production in 2024, a rebound is expected in 2025.
-
In 2024, SIPEF's banana production saw strong growth, with an increase of 24.6% driven by expansions at Lumen (53.0%) and Akoudié (205.1%), reflecting the positive impact of recent investments.
-
SIPEF launches initiatives to empower more women in plantation roles, enabling them to access higher paid labour functions within the plantations.
-
Plantations J. Eglin celebrates 100% Fairtrade certification with Fairtrade Africa visit.
-
Post balance sheet, the SIPEF group received a termination letter from the purchaser related to the conditional sale and purchase agreement regarding PT Melania. SIPEF group has contested the legal validity of this termination letter.
-
SIPEF has an optimistic outlook for its performance in 2025, and expects that the final recurrent result for 2025 will surpass the recurrent result of 2024.