Press Release
Regulated information
The connection to the world of sustainable tropical agriculture
Results of the SIPEF group
as per 31 December 2025 (12m/25)
The SIPEF group delivers record results in 2025
2025 highlightsSIPEF delivered an outstanding recurrent result (Group share) for the period ended 31 December 2025 of KUSD 127 367, up 77.1% from last year (2024: KUSD 71 913). This was driven by solid palm oil and banana production, reflecting maturing hectares and strong operational performance, and supported by favourable selling prices. The net result for the period (Group share) was KUSD 125 449.
Following the Group's record performance in 2025 and supported by a positive outlook, SIPEF's board of directors proposes a substantially higher dividend, with a new payout ratio of 40% applied going forward (30% in previous years), and a gross dividend of EUR 4.30 per share, up 115% from last year, to be paid on 1 July 2026.
SIPEF recorded a total crude palm oil (CPO) production of 441 867 tonnes in 2025, representing a 21.9% increase over last year. This strong performance reflects favourable agronomic conditions in Indonesia, increased output from maturing hectares in South Sumatra, and a strong production recovery in Papua New Guinea following rehabilitation after the November 2023 volcanic event.
In 2025, banana production rose to 52 159 tonnes, up 2.2% from 2024, driven by strong growth at the newly expanded Akoudié plantation.
In 2025, the Group recorded an average ex-mill gate1 selling price of USD 955 per tonne for its CPO, marking an increase of 10.2% from USD 867 per tonne in the prior year.
supporting local social development with the delivery of a new public primary school. 1The ex-mill gate price is the net selling price received after the deduction of all sales charges |
Petra Meekers, managing director "2025 was a record year for SIPEF, driven by the commitment, strong execution, and resilience of our people across all operations. Our strong performance reflects years of disciplined investment and strategic decision-making, supported by favourable market conditions. Over the course of the year, we further strengthened the Group's organisational depth, and maintained our focus on long-term, sustainable value creation. I am inspired by the dedication of our teams and proud of the strong foundation we have built together, as we look ahead to 2026 with confidence." Bart Cambré, chief financial officer "2025 was an exceptional year for SIPEF. We delivered a recurring net result for the period of USD 127 million, up 77.1% over last year, and generated operating cash flow of USD 222 million. This strong result and cash generation allowed us to further reinforce our balance sheet, closing the year with an equity, share of the group, of over USD 1 billion and a net financial position of USD 88 million, even after substantial investments in expansion, mill upgrades, and replanting. Considering this record performance and our positive outlook, the board of directors proposes a higher dividend of EUR 4.30 per share, up 115% compared with 2024, and has set a payout ratio of 40% going forward, reaffirming our commitment to sustainable shareholder returns." |
Management report
Group production
Third YTD YoY%
parties Q4/25
76 143 441 867 21.9%
0 52 159 2.2%
Third YTD
parties Q4/24
61 185 362 405
0 51 038
301 220
51 038
95 903
13 666
Third
parties
79 019 16 884
13 666 0
Palm oil
Bananas
Own
Q4/24
Own
2024 (in tonnes)
365 724
52 159
21.2%
-0.8%
116 242
13 554
Own
Q4/25 YoY%
Third
parties
19 703
0
96 539
13 554
Palm oil
Bananas
Group production
2025 (in tonnes) Own
In the fourth quarter of 2025, SIPEF recorded a total crude palm oil (CPO) production of 116 242 tonnes, representing a 21.2% increase compared to the same period in 2024.
Total production of fresh fruit bunches (FFB) reached 484 885 tonnes, up 15.8% over Q4 2024, reflecting both higher crop availability and improved harvesting conditions. The average Group oil extraction rate (OER) increased to 24.1%, underpinned by operational optimisation and completed mill upgrades.
In Indonesia, palm oil production continued to trend upward in the fourth quarter of 2025, up 18.6% over Q4 2024, supported by a 12.4% rise in FFB availability and solid operational execution across the estates. South Sumatra continued to benefit from the maturation of planted areas, sustaining strong production levels, while North Sumatra delivered a strong quarter, underpinned by good crop availability and stable mill performance. The Agro Muko plantations in Bengkulu recorded a softer quarter, reflecting timing effects in bunch ripening and temporarily lower crop availability.
In South Sumatra, production continued to strengthen in the fourth quarter of 2025. FFB production increased by 24.9%, driven by the continued contribution of young mature areas and good fruit set towards year-end. As a result, palm oil production rose by 31.1%, further supported by a higher OER of 24.5%, reflecting improved milling efficiency and throughput management. This strong fourth-quarter performance built on a consistently strong production profile throughout 2025. For the full year, FFB production increased by 27.4%, while palm oil production rose by 34.5%, confirming South Sumatra as the Group's main growth engine. The improvement reflects the expanding mature planted area, favourable agronomic conditions earlier in the year, and sustained focus on operational management and mill utilisation.
On the organic soils in North Sumatra, performance strengthened notably in the fourth quarter of 2025. FFB production increased by 18.7%, while palm oil production rose by 30.2%, supported by improved crop availability, the contribution of the Citra Sawit Mandiri (CSM) crop, and a significant improvement in OERs, which increased to 22.6%, compared with 21.3% in the same period last year. Over the course of 2025, production was influenced by some weather variability earlier in the year, including drier conditions during the mid-year period, which temporarily affected crop development on organic soils. Field conditions stabilised
toward the end of the year. As a result, palm oil production for the full year increased by 25.4%, supported by a sustained improvement in oil extraction efficiency, with the average OER of 22.8%.
The mineral soil estates in North Sumatra showed a steady improvement over 2025, with FFB production increasing by 3.6% year-to-date. After a stronger first six months of the year, momentum continued in the third quarter, when FFB volumes rose by 2.6%, despite a temporary mid-year dry spell. Field conditions continued to be stable in the fourth quarter, with adequate and well-distributed rainfall supporting good crop availability and consistent harvesting. As a result, the mineral soil estates delivered a strong fourth quarter, with FFB production up 8.9% over last year, supported by improved milling efficiency and OERs up by 3.6%. Palm oil production increased by 12.1% in the fourth quarter, while year-to-date production was up by 7.8%.
In the Bengkulu region, FFB production in the fourth quarter of 2025 declined by 5.2% compared to the same period last year, reflecting timing effects in bunch ripening and temporarily reduced crop availability towards year-end. Despite the lower crop intake, palm oil production increased by 0.9%, supported by an improvement in OERs to 23.7%, compared to 22.2% in the previous year, reflecting stable milling performance and operational optimisation. Over the course of 2025, the Bengkulu region delivered a solid underlying production performance, with year-to-date FFB production increasing by 8.5%. This reflects the progressive maturation of younger planted areas, alongside ongoing replanting activities, which may affect quarterly comparisons but continue to strengthen the long-term production base. A total of 1 952 hectares was replanted successfully across the Bengkulu estates in 2025.
In Papua New Guinea, palm oil production increased by 27.7% in the fourth quarter, supported by a 24.8% rise in FFB availability. This performance reflected a combination of improved OERs, which increased by around 2.3%, favourable and well-distributed rainfall without major extremes supporting even bunch ripening and the continued recovery of rehabilitated production areas following the 2023 volcanic eruption. In addition, smallholder crop contributions remained strong, further supporting overall crop availability and mill throughput.
In the fourth quarter of 2025, own FFB production in Papua New Guinea increased by 40.8%, while own palm oil production rose by 44.6%, supported by good crop availability and continued improvements in oil extraction performance. Field conditions during the quarter were favourable, with well-distributed rainfall and no major weather extremes, enabling even bunch ripening and consistent harvesting activity. The continued recovery of rehabilitated areas, together with strong smallholder production, lifted the total FFB production by 24.8%, further supporting overall crop availability. This strong fourth-quarter performance capped a clear recovery over full year 2025, during which total palm oil production in Papua New Guinea increased by 27.7%. The improvement reflects the progressive return of areas impacted by the 2023 volcanic eruption, sustained gains in oil extraction efficiency and a consistently solid contribution from smallholders, supported by generally favourable climatic conditions.
Banana production in Côte d'Ivoire amounted to 13 554 tonnes in the fourth quarter of 2025, representing a 0.8% decrease compared to the same period last year. Performance varied by plantation; the production at Motobé increased by 53.8%, reflecting the phasing of agronomic optimisation measures, while output at Lumen declined by 18.4% as the plantation moved further into a more mature production cycle. This was partly offset by continued growth at Akoudié, where production increased by 12.0%, confirming the contribution of the newer plantations.
For full year 2025, banana production reached 52 159 tonnes, an increase of 2.2% compared to the previous year. This positive result was recorded despite periods of heavy rainfall and storm events, which temporarily disrupted field operations and reduced average bunch weights, particularly at the more mature plantations.
The annual growth was driven by the contribution of recently expanded areas, as production progressively shifted into more normalised cycles following the completion of the expansion programme. Over the year, production at Motobé decreased by 10.1%, reflecting ongoing agronomic optimisation, while production at Lumen declined by 9.3% as yields stabilised with plantation maturity. These reductions were more than compensated by strong growth at Akoudié, where production rose by 48.7%.
Markets
YTD Q4/25 | YTD Q4/24 | |||
In USD/tonne | ||||
Palm oil | MDEX* | 990 | 906 | |
Palm kernel oil | CIF Rotterdam** | 1 866 | 1 381 | |
Bananas | CFR Europe*** | 852 | 807 | |
Average market prices
* Bursa Malaysia Derivatives exchange price data
** Oil World price data
*** CIRAD price data (in EUR)
The fourth quarter of 2025 began with palm oil prices at elevated levels, both in absolute terms and relative to soybean oil. During the third quarter, palm oil exports were subdued following several months of uncompetitive pricing, leading to a gradual build-up of stocks. However, the unexpectedly strong production growth in the fourth quarter - particularly in Malaysia - took the market by surprise. A price correction in the final two weeks of October brought the market back into balance, although a significant amount of export business, especially from India, had already been missed.
Stocks in Malaysia increased to approximately three million tonnes, as fourth-quarter production exceeded the previous year by around 900 000 tonnes. Lagging exports were insufficient to absorb this unusually strong production growth. In contrast, stock levels in Indonesia remained more balanced, supported by its much larger domestic market driven by food consumption and biodiesel demand.
European policy developments also influenced sentiment during the year. Continued uncertainty around the implementation of the European Union Deforestation Regulation (EUDR) led some buyers to prioritise short-term flexibility in their procurement decisions. Following the European Parliament's decision to postpone the regulation by a further year, purchases of segregated oil certified by the Roundtable on Sustainable Palm Oil (RSPO) slowed towards year-end, highlighting a gap between stated sustainability ambitions and near-term sourcing commitments.
Benchmark crude palm oil (CPO) futures on the Bursa Malaysia Derivatives (MDEX/BMD) declined from the USD 1 050-1 100 per tonne range in mid-October to around USD 1 000 per tonne for the remainder of the quarter.
Palm kernel oil (PKO) prices were also slightly softer during the fourth quarter, reflecting improved production and weaker coconut oil prices. Tightness in coconut oil supply eased following better output in recent months, although full-year production remained more than 10% lower due to earlier drought conditions. Demand for lauric oils remained solid, particularly from China, where oleochemical margins stayed healthy. Crude palm kernel oil (CPKO) cost, insurance, freight (CIF) Rotterdam prices ranged between USD 1 750 and USD 1 900 per tonne.
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