Golden Agriculture: Full year results.

Golden Agriculture released its full year results today.  Compared to the previous financial year, gross profit is down 42% and EBITDA is down 33%.  However, quarter on quarter, its gross profit improved 78% and EBITDA improved 236%.  This is a strong sign that the business is improving strongly.

Its balance sheet is very strong with low gearing.  Nett debt to equity ratio at the end of 2009 was 0.06x and nett debt to total assets ratio for the same period was 0.04x.  Total equity attributable to equity holders was up 18% to US$5,438m.

A dividend of 0.495c per share has been declared.

Golden Agriculture remains the least expensive of all CPO counters listed in Singapore.  It is also the most levered to the price of CPO and with expectations for the price of CPO to continue appreciating over the next two years, Golden Agriculture is likely to do better as well.

The following is taken from the presentation:

Optimistic Outlook for 2010



• Resilient growth in edible oil demand, especially for palm oil
Growing popularity as edible oil in developed and emerging markets
Increasing demand for substitute and alternative uses such as oleochemicals and biodiesel


• The Company is benefiting from the solid industry outlook
Sustained and best-in-class leadership in plantation growth
Actively exploring acquisition opportunities in upstream and downstream
Solid financial position with low gearing and strong cash flows

For the full presentation, please visit:
Golden Agriculture: Year ended 31 Dec 2009