First Resources: A Palm Oil Powerhouse Beats Expectations!

Ladies and Gentlemen, buckle up! We've got a winner on our hands, and it's not just any winner—it's First Resources, the palm oil powerhouse that just crushed its Full Year 2024 earnings expectations! This is a company that's not just playing the game; it's rewriting the rules. Let's dive in and see what makes First Resources the talk of the town!



First off, let's talk about the numbers. First Resources reported a 5.9% increase in revenue, bringing it to a whopping US$1.04 billion for FY 2024. That's right, folks—5.9% growth in a market that's as volatile as a roller coaster! But here's the kicker: this growth is not just a one-off; it's a testament to the company's resilience and strategic prowess. The industry average growth forecast for the Food industry in Singapore is 5.7% over the next three years, but First Resources is already there and then some!

Now, let's break down the key drivers behind this stellar performance. First and foremost, higher average selling prices. The company's H2 sales rose by 9.4% to US$581.5 million, driven by stronger palm oil prices. This is a no-brainer—when prices are up, revenues follow suit. But it's not just about the prices; it's about the margins too. First Resources' profit margin skyrocketed from 15% in FY 2023 to 24% in FY 2024. That's a 9% increase, folks! This was primarily driven by higher revenue and improved processing margins. The company's EBITDA for 9M2024 rose by 26.9% to US$273.7 million, and its underlying net profit grew by 27.6% to US$151.6 million. These numbers are not just impressive; they're downright jaw-dropping!

But wait, there's more! First Resources' production metrics are also on fire. The company harvested 2,731,044 tonnes of FFB for 9M2024, a 4.5% increase from the previous year. CPO production also saw a 3.5% increase to 717,250 tonnes. This is a company that's not just sitting on its laurels; it's actively growing and expanding its operations.

Now, let's talk about sustainability. First Resources is not just about the numbers; it's about the long-term vision. The company's commitment to sustainable palm oil production is a game-changer. With Indonesia's biodiesel mandate set to increase from B35 to B40 in 2025, the demand for palm oil is only going to rise. This is a company that's not just riding the wave; it's creating the wave!



So, what's the bottom line? First Resources is a buy, buy, BUY! This is a company that's not just beating expectations; it's smashing them to smithereens. With a robust financial position, a healthy gross gearing ratio of 0.19 times, and cash and bank balances of US$147.9 million, First Resources is poised for even greater heights. The company's shares are up 3.5% from a week ago, and with a dividend yield of 5.51%, it's a win-win situation for investors.

So, don't miss out on this opportunity, folks! First Resources is the real deal, and it's time to get in on the action. This is not just a stock; it's a movement. It's the future of palm oil production, and it's happening right now. So, what are you waiting for? Get in on the ground floor and watch your investments soar to new heights!