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Golden Agri-Resources records a robust quarterly performance in early 2021

Posted: May 12, 2021 4 minute read Investor Relation GAR 0 Likes
  • EBITDA1 for the first three months more than doubled year-on-year to US$232 million, as CPO market prices continued to rise
  • First quarter 2021 palm product output improved significantly by 32 per cent to 812,000 tonnes, supported by favourable weather conditions




Three months ended


31 Mar 2021

(1Q 2021)

31 Mar 2020

(1Q 2020)






Gross Profit








Underlying Profit/(Loss)2




Foreign Exchange Loss3




Deferred Tax Expense




Net Profit/(Loss)4




1 Earnings before tax, non-controlling interests, interest on borrowings, depreciation and amortisation, net gain or loss from changes in fair value of biological assets, foreign exchange loss, and exceptional items 

2 Net profit attributable to owners of the Company, excluding net effect of net gain or loss from changes in fair value of biological assets, depreciation of bearer plants, exceptional items, foreign exchange loss, and deferred tax expense

3 Net of tax and/or non-controlling interests

4 Attributable to owners of the Company


Singapore, 12 May 2021 – Entering the year 2021, Golden Agri-Resources Ltd (“GAR” or the “Company”) continued to record a robust quarterly performance. First-quarter EBITDA1 more than doubled to US$232 million compared to the first quarter last year. Underlying profit2 and net profit3 saw a turnaround to US$99 million and US$41 million, respectively. This performance was achieved on the back of a 24 per cent year-on-year increase in revenue to over US$2 billion, primarily attributable to the continued appreciation of CPO market prices.

During the first quarter 2021, CPO prices (FOB Belawan) averaged US$1,057 per tonne, an increase of 57 per cent compared to the same period last year. GAR’s upstream business benefitted from this and made the largest contribution to its consolidated EBITDA1. The performance of its downstream business also improved year-on-year after we successfully weathered the unprecedented COVID-19 challenges last year.

On the outlook, Mr. Franky O. Widjaja, GAR Chairman and Chief Executive Officer commented: “Global oilseed production has been distorted by extreme dry weather in South America and other parts of the world. Supply has been very tight so far and we foresee that this will continue for the rest of the year. Accordingly, tightness in global vegetable oil supply will continue.”

“As COVID-19 vaccination is progressing worldwide, we are optimistic that demand for vegetable oils will remain strong both in the food and energy sectors. We remain vigilant and continue to monitor the development of the COVID-19 pandemic in major consuming countries. Nonetheless, the industry and its supply chains have learned from the lockdowns implemented last year and are better equipped in managing these issues.”

Mr. Widjaja further added: “Consumers are increasingly looking for healthier and responsibly sourced products to meet their food and energy demands. Palm oil’s competitive attributes make GAR well-positioned to benefit from this trend.”

As of 31 March 2021, GAR’s planted area stood at 536 thousand hectares, of which 21 per cent is owned by plasma smallholders. Fruit yield for first quarter 2021 reached 5.3 tonnes per hectare, a 22 per cent increase from last year’s period supported by favourable weather conditions.

Sales volume of downstream business was lower in the current quarter due to timing of delivery resulting to higher inventory at the end of the quarter.

GAR continued with its sustainability programmes despite the on-going challenges due to the global pandemic. As of the first quarter 2021, the Company has achieved 94 per cent Traceability to the Plantation (TTP) for its entire palm supply chain. Two of its six refineries, Surabaya and Lampung, are already performing at over 99 per cent and 96 per cent TTP respectively. Resources will focus on the remaining four refineries. On top of that, GAR has to date profiled 119,022 independent smallholders through our Ksatria Sawit programme. Smallholder palm oil fruit enters our supply chain through a network of dealers and suppliers. The field teams collaborate with this network to meet with smallholders in person and to collect spatial and agronomical data. TTP and smallholder profiling enable supply chain monitoring, for example, to address deforestation alerts – towards achieving deforestation-free supply chains.

GAR has also boosted its capacity and capability to monitor deforestation risk in its own estates and its supply chain. In Indonesia, deforestation linked to palm oil has declined consistently since 2012 thanks to government conservation policies and corporate deforestation-free commitments. However, the supply chain is long and complex involving many small companies and farmers. At the same time, customers want the confidence that suppliers like GAR are identifying and rapidly acting on any deforestation events in their supply chain. A satellite monitoring system and AI-driven dashboard give GAR the capability to identify and act rapidly on any deforestation events.


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About Golden Agri-Resources Ltd (GAR)

GAR is one of the leading palm oil plantation companies with a total planted area of 535,826 hectares (including plasma smallholders) as at 31 March 2021, located in Indonesia. It has integrated operations focused on the production and distribution of an extensive portfolio of palm-based products.

Founded in 1996, GAR was listed on the Singapore Exchange in 1999 and has a market capitalisation of US$2.0 billion as at 31 March 2021. Flambo International Limited, an investment company, is currently GAR’s largest shareholder, with a 50.52 percent stake. GAR has several subsidiaries, including PT SMART Tbk which was listed on the Indonesia Stock Exchange in 1992.

GAR is focused on responsible palm oil production. In Indonesia, its primary activities include cultivating and harvesting of oil palm trees; processing of fresh fruit bunch into crude palm oil (CPO) and palm kernel; refining CPO into value-added products such as cooking oil, margarine, shortening, biodiesel and oleo-chemicals; as well as merchandising palm products globally. GAR’s products are delivered to a diversified customer base in over 70 countries through its global distribution network with shipping and logistics capabilities, destination marketing, on-shore refining and ex-tank operations in many countries. GAR also has complementary businesses such as soybean-based products in China, sunflower-based products in India, as well as sugar businesses.


For media enquiries, please contact:

Wulan Suling

Mobile: +62 818 909 900           

Email: [email protected]  


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