GROUP PERFORMANCE REVIEW IndoAgri is a vertically integrated agribusiness group and a leading palm oil producer in Indonesia, with operations spanning from R&D, seed breeding, oil palm cultivation and milling, to the manufacturing andmarketing of cooking oils, margarine and shortening. The Group also cultivates sugar cane, rubber and other crops as part of its diversified portfolio. The Plantation Division is IndoAgri’s principal business. In Indonesia, the Division owns 293,429 hectares of planted crops and operates 27 palm oil mills, three crumb rubber processing facilities, two sheet rubber processing facilities, two sugar mills and refineries, and one factory each for the production of tea and cocoa. It also has an investment in three sugar and ethanol mills in Brazil through CMAA. The Group’s EOF Division owns and operates five CPO refineries across Indonesia to produce a wide range of branded cooking oils, margarine, shortening and specialty fats. FINANCIAL HIGHLIGHTS Prices of most agricultural commodities increased sharply in the first half of 2022, driven by the disruption of Ukraine’s sunflower oil supply due to Russia-Ukraine conflict and the Indonesian government’s ban on palmoil exports. However, commodity prices started to ease from July 2022 following the lifting of the export ban, along with the increased availability of competing vegetable oils. After the extreme volatilities experienced in 2022, the prices of vegetable oils (including palm oil) showed signs of stabilisation, with fluctuations moving within a much narrower range in 2023. CPOprices (CIF Rotterdam) declined by 29% to an average of USD972 per tonne in 2023 from USD1,370 per tonne in 2022. The Group recorded lower profitability in 2023 mainly due to lower selling prices of palm and EOF products. However, the decline was partly offset by higher sales volume of palm products. Net profit after tax contracted by 29% to Rp936 billion in 2023, mainly due to lower gross profit. This was partly offset by lower other operating expenses, net changes in fair value of biological assets and lower income tax expenses. FINANCIAL POSITION As of 31 December 2023, the Group’s total non-current assets stood at Rp27.2 trillion, compared to Rp27.7 trillion in the previous year. The decrease was mainly due to the depreciation of property, plant and equipment, lower rightof-use assets and carrying value of investment in associate companies. However, this was partly offset by higher carrying value of investment in joint ventures. The Group recorded total current assets of Rp9.9 trillion as of 31 December 2023, compared to Rp10.6 trillion in the previous year. The decrease was mainly due to lower CPO Revenue (Rp trillion) Profit Attributable to Owners of the Company (Rp trillion) 2023 2022 2021 0.6 0.8 0.8 2023 2022 2021 16.0 17.8 19.7 Profit from Operations (Rp trillion) NAV per share (Rp) 2023 2022 2021 9,703 9,241 8,310 1.9 2.7 2.8 2023 2022 2021 GROUP OVERVIEW OPERATION AND FINANCIAL REVIEW SUSTAINABILITY & GOVERNANCE FINANCIALS OTHER INFORMATION Indofood Agri Resources Ltd 12
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