According to an official statement received by on Wednesday (4/3/2026), the Group’s revenue increased 29.2% in FY2025 compared with FY2024, driven by higher sales volumes and improved average selling prices (ASP) for crude palm oil (CPO) and palm kernel (PK).
“The average selling price of CPO increased by 6.0% from US$785 per metric ton in FY2024 to US$832 per metric ton in FY2025, while the average selling price of PK jumped 44.1% from US$491 to US$708 per metric ton,” the management stated in the report.
In addition to higher prices, sales volumes also increased. CPO sales rose 17.3% from 173,323 MT to 203,314 MT, while PK sales grew 18.1% from 33,833 MT to 39,964 MT.
The increase in volume was mainly supported by higher production and improved operational performance.
Higher Costs but Stable Margins
Alongside revenue growth, cost of sales increased 29.5%, rising from US$110.4 million in FY2024 to US$143.0 million in FY2025.
The increase was largely due to more intensive fertilization and plantation maintenance activities aimed at sustaining crop health and improving yield potential.
Higher CPO market prices also led to increased FFB procurement costs from plasma cooperatives and third-party suppliers. In addition, higher purchases of third-party CPO to meet shipment commitments and optimize distribution contributed to the cost increase.
Despite rising costs, gross profit margin remained relatively stable at 28.0% in FY2025, compared with 28.2% in FY2024.
Net Profit Jumps 54%
In terms of profitability, profit before tax increased to US$24.8 million in FY2025, up from US$22.7 million in FY2024, mainly driven by higher gross profit.
“After accounting for lower income tax expenses, the Group recorded net profit of US$18.4 million in FY2025, representing a 54.4% increase compared with US$11.9 million in FY2024,” management stated.
The company also noted that earnings were partially affected by losses from fair value changes in biological assets and plasma receivables, primarily due to moderating CPO prices from the elevated levels recorded at the end of 2024.
Supported by favorable prices, higher sales volumes, and stable margins, Kencana Agri closed FY2025 with stronger financial fundamentals compared with the previous year.
