Golden Agri-Resources Ltd (GAR) Q3 2025 Financial Analysis: Strong Performance Driven by Higher Output and Prices

Golden Agri-Resources Ltd (GAR), one of the world’s leading palm oil plantation companies, delivered a robust third quarter and nine-month performance for 2025, marked by record revenues, improved margins, and a strengthened balance sheet. Below, we break down the key financial metrics, operational highlights, and strategic developments relevant to investors.

Key Financial Metrics: Year-over-Year and Quarter-over-Quarter Comparison

*Figures inferred from nine-month data and change percentages, as quarterly splits for 2024 were not explicitly provided.

Historical Performance Trends

• Revenue for the nine-month period hit a record high of US\$9.53 billion, up 21% YoY, primarily due to a 17% increase in crude palm oil (CPO) prices and higher plantation output.
• EBITDA for the nine months rose 16% to US\$882 million, with net profit up 29% to US\$284 million.
• Gross margin and EBITDA margin remained healthy, supported by both price and volume improvements.

Operational Highlights

• Upstream palm product output (CPO and palm kernel) increased by 6% YoY, reaching 1.99 million tonnes for nine months.
• Downstream sales volume grew modestly by 1% YoY, with a stronger 8% QoQ jump in Q3.
• Fruit yield improved from 12.8 to 13.6 tonnes per hectare, translating to a total fruit output of 6.7 million tonnes.
• GAR continued replanting older estates, resulting in a slight decrease in total planted area to 531,000 hectares, with 491,000 hectares mature.

Balance Sheet and Financial Position

• Total assets at end-Q3 2025 stood at US\$10.62 billion, broadly stable year-to-date.
• Interest-bearing debts declined 15% from end-2024, improving the debt/equity ratio to 0.56x (from 0.69x).
• Net debt/EBITDA fell sharply to 0.10x, indicating strong deleveraging.
• Current ratio improved from 1.45x to 1.52x, underlining enhanced liquidity.

Exceptional Items & Fund Flows

• Foreign exchange gains and losses were volatile, with a US\$8 million gain in Q3 offsetting a US\$17 million loss in Q2.
• No major asset revaluations, divestments, IPOs, or fundraising activities disclosed this period.

Sustainability Initiatives

• Three new methane capture plants commissioned in 2025, targeting annual CO₂e reductions of 150,000 tonnes.
• Independent smallholder programme exceeded targets, reaching 11,000 farmers and 800 smallholders certified.
• GAR received industry recognition for supply chain and environmental reporting.

Industry Outlook

Industry fundamentals remain robust, with rising global demand for vegetable oils. However, supply growth is constrained by ageing plantations and replanting, supporting CPO prices. Risks include changes in biofuel mandates, policy shifts, and geopolitical tensions which may increase price volatility.

Chairman’s Statement

No explicit Chairman’s statement was provided in the report.

Conclusion & Recommendations

Overall Financial Performance and Outlook: GAR’s Q3 2025 results were strong, supported by higher CPO prices, increased output, and improved margins. The company has effectively managed its balance sheet, reduced debt, and maintained healthy liquidity. Sustainability initiatives and industry awards further strengthen its ESG profile. However, competitive pressures in downstream and ongoing market volatility remain key challenges.

Investor Recommendations

• If you are currently holding GAR stock: The financial and operational performance supports a continued hold position. The company’s strong balance sheet, healthy margins, and proactive sustainability investments suggest resilience and potential for further upside, especially if CPO prices remain firm.
• If you are not holding GAR stock: Consider initiating a position if seeking exposure to the palm oil sector, given GAR’s leading market position, robust financials, and sustainable business practices. Monitor industry risks related to policy changes and price volatility, and consider gradual entry.

Disclaimer: This analysis is based solely on information disclosed in the Q3 2025 GAR financial report. It does not constitute financial advice. Investors should conduct their own due diligence and consider their risk tolerance and investment objectives before making any investment decisions.

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