Indofood Agri Resources’ H2 net profit rise 13.6% to 932.4 billion rupiah

[SINGAPORE] Indofood Agri Resources on Friday (Feb 27) posted a 13.6 per cent rise in net profit to 932.4 billion rupiah (S$70.4 million) for its second half ended Dec 31, 2025, from 820.8 billion rupiah for the year-ago period.

Revenue came in at 11.7 trillion rupiah, up 30.8 per cent from 8.9 trillion rupiah a year earlier. The improved showing came on the back of “higher selling prices and increased volume” in its plantation and edible oils and fats (EOF) divisions.

At the same time, the group’s other operating expenses fell, while foreign exchange gains rose; these offset a slight decline in gross profit caused by higher palm production costs.

Earnings per share for H2 FY2025 rose to 668 rupiah from 588 rupiah previously.

The plantation segment’s revenue climbed 14 per cent amid “higher sales volume and selling prices of palm products”. However, its operating profit declined 5 per cent “due to higher palm production costs and lower fair-value gains on biological assets”.

The EOF segment, meanwhile, clocked 23 per cent revenue growth through “competitive pricing strategies” and higher sales. Its operating profit fell 4 per cent year on year; the group said this was “largely due to lower income from the sale of export allocation rights”.

For the full year, Indofood Agri’s net profit rose 13.5 per cent to 1.3 trillion rupiah; revenue grew 31.9 per cent to 21.1 trillion rupiah.

A first and final dividend was recommended for FY2025, with details to be “announced at a later date”. The dividend will be subject to shareholder approval at Indofood Agri’s annual general meeting in end-April.

Commodity volatility to persist

With commodity prices “expected to remain volatile” due to supply-and-demand dynamics, weather patterns and geopolitical risks, Indofood Agri said it will “continue to focus on targeted action plans”.

Through such plans, the group will seek to “improve operational outcomes, strengthen cost controls, drive agronomic innovations and prioritise capex in critical areas”.

The expansion of Indofood Agri’s Tanjung Priok refinery, which was completed in the fourth quarter of 2025, added a third production line “capable of processing up to 450,000 tonnes of CPO (crude palm oil) per year”.

The group added that its EOF segment will leverage the expanded refining capacity and advanced technologies to “increase sales volumes through competitive pricing, strengthen distribution networks and ensure consistent product availability”.