Interim statement of the SIPEF group per 31 March 2024

April 18, 2024

SIPEF looks forward to another strong performance year

• Palm oil markets remain favourable from a historical perspective and prices continue to meet the high levels observed during 2023.

• The Group records a 9.0% decline in palm oil production at the end of March. Increasing palm oil production volumes in Indonesia could not fully offset the impact of last year’s volcanic eruption on the productions of own estates and smallholder plantations in Papua New Guinea.

• However, over the year, the production volumes for 2024 will be close to 400 000 tonnes, in line with those of the previous year, due to the growing importance of South Sumatra production.

• Banana productions increased by 36.3% on the previous year’s first quarterly exported volumes. The rise is entirely related to the ongoing expansion of 430 hectares in two new production sites in Côte d’Ivoire.

• The final recurring Group’s result for 2024 might be slightly lower than, but close to the USD 72.7 million recorded at the end of 2023. Thanks to supportive palm oil markets SIPEF looks forward to another strong performance year, but the volcanic eruption will still impact the production volumes in Papua New Guinea.  

• Cultivated areas in Musi Rawas reached 18 699 hectares, all in compliance with RSPO. With the replant of Dendymarker completed, the Group has 28 654 hectares newly planted maturing oil palm hectares in South Sumatra, of which 25.4% are still immature.

• Generated cash flows are expected to cover the extensive investment plan of more than USD 100 million, the working capital requirements and the dividend distribution of USD 23.3 million. At year end, the Net Financial Position will be close to the USD -31.4 million recorded at the end of 2023.

• Petra Meekers will succeed François Van Hoydonck as Managing Director of SIPEF as from the 1st of September 2024 onwards, subject to approval of her appointment as Director by the annual meeting of shareholders in June.

• SIPEF ranks 4th out of 350 companies on Forest 500, with a score increase of 10% from the previous assessment.

• In support of its transition planning, SIPEF is completing its biodiversity and climate risk and opportunity assessments conducted in the first quarter of 2024.

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