Sipef SaEURONEXT: SIP

Half year results of the Sipef group per 30 June 2025 (EN NL)

Aug 14, 2025 at 4:49 AM UTC · Issued by Sipef Sa

Regulated information within the meaning of the Royal Decree of 14 November 2007

Press release

Schoten, 14 August, 2025

Half-yearly financial report
1. Group production
2. Markets
3. Financial Statements
4. Prospects
5. Sustainability
Condensed half-yearly financial statements
1. Condensed half-yearly financial statements of the SIPEF group
  1. Condensed consolidated balance sheet
  2. Condensed consolidated income statement
  3. Condensed consolidated statement of comprehensive income
  4. Condensed consolidated cash flow statement
  5. Condensed statement of changes in consolidated equity
2. Notes
  1. General information
  2. Basis of preparation and accounting policies
  3. Use of accounting estimates and judgements
  4. Consolidation scope
  5. Income taxes
  6. Segment information
  7. Turnover
  8. Equity consolidation - share of profit and loss of associated companies and joint ventures
  9. Shareholders' equity
  10. Net financial assets/(liabilities)
  11. Financial instruments
  12. Business combinations, acquisitions, and divestitures
  13. Related party transactions
  14. Important events
  15. Events after balance sheet date
  16. Risks
Certification of responsible persons
Report of the statutory auditor

Half-yearly financial report of the SIPEF group

as per 30 June 2025 (6m/25)

SIPEF on track for a record year

SIPEF recorded a total Crude Palm Oil (CPO) production of 208 060 tonnes for the first half of 2025, reflecting a 19.1% increase compared to the same period in 2024. This growth was supported by an increase in Fresh Fruit Bunches (FFB) and improved oil extraction rates across both geographies.
In Indonesia, CPO volumes are up 21.1%, and in Papua New Guinea 13.9% from last year, supported by favourable weather and the recovery after the volcanic eruption in November 2023.
Banana production increased with 3.4% contributed by the maturing area of the recently developed areas.
Palm oil markets remain favourable from a historical perspective and prices hovered around USD 960 per tonne on the Malaysian MDEX.
In the first half of 2025, SIPEF achieved an average CPO price of USD 965 per tonne ex-mill gate, up 15.3% from last year. Prices were strongest in Papua New Guinea at USD 1 129 per tonne, while Indonesia averaged USD 864 per tonne. Palm Kernel (PK) prices also recovered sharply to USD 754 per tonne, a 63.4% increase from the first half of 2024.
The operating result almost doubled, reaching KUSD 84 641 by end June 2025, compared to KUSD 44 001 in the
first half of 2024. This reflects strong underlying performance in the Group's core activities.
The result for the period, share of the Group, rose to KUSD 57 718, a significant increase from KUSD 25 029 in the same period last year.
The Group maintained a strong financial position, with total equity increasing to KUSD 973 679 and a net cash position of KUSD 19 933.
The Group remains on track to achieve its forecasted CPO production of 430 000 tonnes, provided that growing conditions continue to be supportive.
In South Sumatra, 24 557 hectares of the 30 418 hectares planted are now classified as mature and contributing to production, reflecting the steady development of the plantation base.
To date, 73% (last year 64%) of the budgeted palm oil production has been sold at an average price of USD 963 per tonne ex-mill gate (last year USD 857 per tonne ex-mill gate). Together with the prospect of continued favourable market prices for palm oil, the Group's recurring annual results will be significantly higher than last year and is on track to deliver a new record year.
The Group is expected to head for a positive net financial position at year end 2025.
Continued progress on the PT Melania divestment, with amended terms signed to reaffirm the transaction.
The Group continues to execute its capex programme in a disciplined and strategic manner, progressing with the implementation of washing plants and biogas/Bio-CNG initiatives in Indonesia, while maintaining a positive cash flow.
Hargy Oil Palms Ltd welcomes RSPO CEO for On-the-Ground Engagement in Papua New Guinea.
SIPEF supported the RSPO certification of over 300 independent smallholders in Indonesia, now eligible to be integrated into SIPEF's fully certified and traceable supply chain.
Plantations J. Eglin hosts Fairtrade leadership and pioneers Human Rights training to advance responsible business practices in West Africa.

Half-yearly financial report

Group production

2025 (in tonnes)	Own	Third	Q2/25	YoY%	Own	Third	YTD	YoY%
		parties				parties	Q2/25
Palm oil	93 562	20 475	114 037	20.0%	170 110	37 950	208 060	19.1%
Bananas	11 482	0	11 482	2.1%	25 977	0	25 977	3.4%

2024 (in tonnes)	Own	Third	Q2/24	Own	Third	YTD
		parties			parties	Q2/24
Palm oil	78 258	16 758	95 016	143 716	31 031	174 747
Bananas	11 241	0	11 241	25 122	0	25 122

In Indonesia, Fresh Fruit Bunch (FFB) production continued its upward trend in the second quarter of 2025, increasing by 12.8% compared to the same period in 2024. This followed a strong first quarter, which saw a 16.4% increase compared to last year. As a result, total FFB production in Indonesia rose by 14.4% in the first half of 2025 compared to the first half of 2024, with all production sites in Sumatra contributing to the growth.

In the Bengkulu region (Agro Muko), favourable rainfall during the first quarter and part of the second quarter supported fruit development, leading to strong harvesting results. Own production volumes in this region increased by 14.7% in Q2 and by 15.3% over the first half, compared to last year. Musi Rawas also benefited from the expansion of its own mature plantation area, which reached 13 551 hectares by the end of June 2025. Including the mature areas of Dendymarker Indah Lestari, a total of 20 854 hectares are now contributing to production in South Sumatra. This contributed to a 28.2% increase in own FFB production in Q2 and a 29.9% increase over the first six months compared to the same period in 2024. In North Sumatra, the mineral soil estates recorded a 7.9% increase in FFB production in the second quarter and a 4.4% increase for the half year compared to last year. However, on the organic soil estates, despite a 10.5% rise in Q1, lower rainfall in 2024 negatively affected yields, resulting in a 7.0% decrease in the second quarter and a slight decline of 0.2% for the first half compared to 2024.

In Indonesia, Crude Palm Oil (CPO) production rose to 134 862 tonnes in the first half of 2025, up 22.1% compared to the same period in 2024. The second quarter alone saw CPO production of 75 035 tonnes, marking a 22.5% increase versus Q2 last year. This growth was supported by both maturing hectares and improvements in oil extraction efficiency. The average Oil Extraction Rate (OER) in Indonesia improved to 23.1% year-to-date, compared to 22.3% in the first half of 2024, with enhanced processing performance and bigger bunches. Particularly in South Sumatra, the recorded year to date OER increased with 3.4%.

The total FFB production in Papua New Guinea showed solid progress in the first half of 2025 and is 7.8% higher than the same period in 2024. In Q2 the own FFB output showed an increase of 10.4% whereby the smallholders continue to outperform with an increase of 16.2% against last year. The overall FFB production for the quarter was 12.8% higher than the same period in 2024. This was helped by the recovery in Navo estate after the volcanic eruption in 2023 and a strong start of the year at Bakada which showed an increase of 6.0% against last year production.

Although rainfall levels in 2025 remained below the 5-year average, the distribution pattern was well balanced and timely. This ensured good fruit bunch ripening, while also supporting accessibility and crop evacuation across the plantation. These conditions helped mitigate some of the early-season shortfall whereby Q1 own production showed a slight decline (-1.5%).

CPO production in Papua New Guinea rose by 13.9% compared to last year, with a stronger increase of 15.4% recorded in the second quarter. This was primarily driven by higher FFB throughput during Q2 and a notable improvement in OER, which averaged 24.7%, up 5.6% from the previous year. All three mills contributed to this performance uplift, benefiting from targeted upgrades and operational enhancements. In particular, the Navo mill upgrade was completed and supporting more efficient processing and contributing to the group-wide improvement in extraction efficiency.

Banana production in Côte d'Ivoire totalled 25 977 tonnes in the first half of 2025, marking a 3.4% increase compared to 25 122 tonnes during the same period in 2024. This growth was primarily supported by strong volumes in the first quarter, while the second quarter was negatively impacted by adverse weather conditions. Production at Azaguié increased by 15.2% compared to last year reflecting improved yields from existing planted areas. At Akoudié, volumes reached 4 825 tonnes, a 67.7% rise compared to last year, driven by the maturing of newly developed area. Lumen's output declined by 9.7% to 8 639 tonnes yet remained in line with business plan expectations as the older plots were planted more than four years ago, which still maintain good yields. At Agboville, volumes fell by 12.1% to 3 538 tonnes due to climatic pressures and normal field rotation. Production at Motobé declined by 13.2% to 3 040 tonnes due to the combined impact of earlier flooding and underlying agronomic constraints. As part of the recovery plan, several blocks have been taken out of rotation and placed under fallow to address soil-related issues. Replanting activities are expected to resume once the conditions have stabilised and ongoing infrastructure improvements, such as the irrigation system upgrade, are completed.

Markets

Average market prices
In USD/tonne		YTD Q2/25	YTD Q2/24	YTD Q4/24
Palm oil (CPO)	MDEX*	960	838	906
Palm oil (CPKO)	CIF Rotterdam**	1 835	1 127	1 381
Bananas	CFR Europe***	900	834	807
* Bursa Malaysia Derivative Exchange price data Oil World Price Data * CIRAD Price Data (in EUR)

The first half of 2025 presented a complex landscape for the global palm oil market, marked by diverging dynamics between the first and second quarters. Despite fluctuations, prices remained relatively firm, supported by persistent structural constraints on the supply side and selective resilience in demand.

In the first quarter, market conditions were shaped by a sharp contrast between constrained supply and softer international demand. While palm oil prices remained high, trading around USD 1 000 per tonne, import volumes into key destinations were muted. India, the largest buyer of palm oil globally, responded to high CPO premiums and more competitive pricing in other oils by shifting a substantial share of purchases to soybean oil. This substitution effect weighed on overall demand in Asia.

At the same time, production in Southeast Asia was hampered by adverse weather. Flooding in Malaysia during Q1 led to lower-than-expected output. Indonesia, while less affected by weather disruptions, also