Annual results of the SIPEF group per 31 December 2023

February 15, 2024

Satisfying result for the SIPEF group

  • Palm oil markets continued to remain favourable from an historical perspective: prices mostly navigated within a tight range between USD 900 and 1 000 CIF Rotterdam during 2023.

  • Steady prices and enhanced cost control guaranteed once more outstanding financial performances, albeit lower than the all-time record year 2022:
    - net recurring result, share of the Group, after tax, amounts to USD 72 735.
    - net profit per share reaches USD 7.0.
    - operational cash flow comes to KUSD 122 632 or, USD 11.8 per share.
    - the Net Financial Position remains limited to KUSD -31 418, after investments of KUSD 106 986, mainly related to the continued expansion in South Sumatra.

  • The board of directors proposes to pay a dividend of EUR 2.00, on 3 July 2024, in line with the 30% payout ratio of previous years.

  • Palm oil production of the SIPEF group declined with 3.1% against last year, as a result of weather challenges, marked by the El Niño weather phenomenon.

  • In Papua New Guinea, the reduction was exacerbated by the volcanic eruption on 20 November 2023. After initial verification, the damage was found less significant than originally estimated and the rehabilitation is proceeding well.

  • The banana production increased by 27.0% on previous year’s exported volumes. The increase is entirely related to the ongoing expansion of 421 hectares in two new production sites in Côte d’Ivoire.

  • Cultivated areas in Musi Rawas continued to grow by 2 337 hectares to 18 760 hectares, in compliance with RSPO. With the replant of Dendymarker completed, the Group has 28 362 newly planted, maturing oil palm hectares in South Sumatra.

  • SIPEF can look forward to another strong performance year, thanks to continuous increasing production in Indonesia and supportive palm oil markets. As the volcanic eruption from November 2023 will still impact the production volumes in Papua New Guinea, the final recurring result for 2024 might be slightly lower than the one presented for 2023.

  • The SIPEF Biodiversity Indonesia (SBI) management plan received government approval last December, securing its licence to manage the 12 672-hectare conservation area for another ten years.

  • SIPEF retains its 11th position on SPOTT (Sustainability Policy Transparency Toolkit), showing a 2.1% improvement since 2022, and demonstrates an upward trend in its score for CDP Climate Change.

SIPEF - The connection to the world of sustainable tropical agriculture