First Resources has reported a net profit of US$36.1 million ($48.81 million) for its 1QFY2024 ended March, up 86.6% compared to the previous corresponding period.
Ebitda rose 26% to US$69.4 million on the back of a 6.2% increase in sales to US$210.5 million.
The company attributes the better financial performance to an improvement in the overall sales volume as well as reduction in export rates, despite lower average selling prices (ASPs).
The increase in sales volume was contributed by a net inventory drawdown of 28,000 tonnes during the quarter, alongside high production volumes and yields.
During the quarter, the volume of fresh fruit bunches (FFB) harvested increased by 6.4% to 778,618 tonnes compared to 731,672 tonnes in 1QFY2023. FFB yield strengthened to 3.9 tonnes per hectare in 1QFY2024, compared to 3.7 tonnes in the same period last year. Crude palm oil (CPO) production also increased by 8.9% to 201,754 tonnes in 1QFY2024.
As at March 31, equity attributable to owners of the company decreased by 1.1% to US$1.29 billion from US$1.3 billion as at December 31, 2023 mainly due to the foreign currency translation losses arising from the depreciation of Rupiah against the US dollar. This is partially offset by profits generated during the quarter.
See also: Envictus reports profit turnaround with earnings of RM50.6 mil
First Resources’ gross gearing ratio and bank balances stood at 0.23 times and US$261.4 million as at March 31. The company also has undrawn committed unsecured credit facilities available of US$35 million.
Shares in First Resources
