Anglo-Eastern Plantations PLC on Friday said it expects palm oil output to rise in the second half of 2024 as a fall in interim revenue was outpaced by a decrease in the cost of sales.
The producer of palm oil and rubber across Indonesia and Malaysia said pretax profit rose 8.4% to $35.2 million in the first half of 2024 from $32.5 million a year prior.
Revenue fell 3.9% to $166.7 million from $173.4 million. Cost of sales decreased 7.0% to $130.4 million from $140.2 million.
Crude palm oil sales contracted 6.1% to 189,500 metric tonnes from 201,800mt a year prior.
Saleable crude palm oil production declined 5.3% to 191,200mt from 210,900mt.
Looking ahead, the company said: ‘In the second half of 2024, palm oil production is expected to increase. Weaker demand from major importers like India and China would exert downward pressure on CPO prices. Additionally, the recent tropical storm Beryl brought heavy rain to the soybean production belt in the USA, which could enhance yields and increase the production of competing vegetable oils for the season. Similarly, soybean production is anticipated to be higher in Brazil and Argentina compared to the previous year. The anticipated increase in supply is likely to push CPO prices downward.’
Anglo-Eastern shares fell 1.3% to 610.00 pence each on Friday morning in London.
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