The Group recorded net current assets of Rp3.3 trillion as at 31 December 2025, compared to Rp4.5 trillion in the previous year-end. The Group’s financial position remained positive, supported by higher cash levels in Lonsum. The Group’s net debt-to-equity ratio improved, decreasing from 0.07 times in the prior year to 0.02 times as at 31 December 2025. CASH FLOWS The Group reported higher net operating cash flows of Rp3.4 trillion in 2025, compared to Rp2.2 trillion in 2024, due to improved operating results and working capital. In 2025, the Group recorded an 8% increase in investing activities to Rp1.5 trillion, primarily driven by higher additions to property, plant and equipment and biological assets, as well as the absence of dividends from a joint venture. In terms of financing activities, the Group recorded a net cash inflow of Rp0.7 trillion in 2025, compared to a cash usage of Rp0.1 trillion in 2024. This was mainly due to drawdowns of loan facilities, partly offset by advance payment for a land lease renewal and higher dividend payment. As of 31 December 2025, the Group’s cash levels increased to Rp8.6 trillion from Rp5.9 trillion a year ago, mainly due to positive operating free cash flows. income, reduced contribution from joint ventures due to weaker operating results, loss arising from changes in fair value of biological assets, and increased income tax expenses in line with higher profit. FINANCIAL POSITION As at 31 December 2025, the Group reported total noncurrent assets of Rp27.9 trillion, compared to Rp25.7 trillion as at 31 December 2024. The increase was mainly due to higher right-of-use assets arising from the renewal of a land lease for a refinery, and increased advances for projects and forestry administrative charges, which were deferred pending the outcome of an appeal. This was partly offset by depreciation and write-off of property, plant and equipment, as well as lower plasma receivables. The Group’s total current assets stood at Rp15.4 trillion as at 31 December 2025, up from Rp13.4 trillion as at 31 December 2024. The increase was driven by increases in trade and other receivables and cash levels. This was partly offset by lower CPO inventories and finished products in the Edible Oils and Fats Division, along with decreases in advances for raw material purchases, prepaid taxes and biological assets. As at 31 December 2025, the Group’s total liabilities increased 12% to Rp14.8 trillion mainly due to higher interest-bearing loans and borrowings, trade and other payables and lease liabilities. This was partly offset by lower amounts due to related parties and deferred tax liabilities. Field officer recording FFB harvest data at Kencana Estate 11 Annual Report 2025 Group Overview Operation and Financial Review Financials Other Information Sustainability and Governance
RkJQdWJsaXNoZXIy NTkwNzg=