20th Apr 2023 13:30
(Alliance News) - REA Holdings PLC on Thursday said both profit and revenue rose strongly in 2022, despite increased distribution costs and administrative expenses.
REA is a London-based company engaged in oil palm cultivation in Indonesia as well as in producing crude palm and palm kernel oil.
It said pretax profit was USD42.0 million in 2022, up 42% on USD29.2 million in 2021, on revenue of USD208.8 million, up 15% from USD191.9 million.
Cost of sales rose by 9.7% to USD145.3 million from USD132.4 million and distribution costs multiplied to USD2.0 million from USD637,000 million. Administrative expenses increased to USD17.3 million in 2022 from USD13.4 million in the prior year.
Operating profit declined to USD41.4 million in 2022 from USD48.1 million in 2021, but pretax profit benefited from finance gains of USD14.7 million, compared to USD1.2 million the year before.
REA added that it was anticipating a more solid financial footing, which would provide opportunities for future growth. REA also predicted a progressive reduction in its net indebtedness, and further cash inflows from loan repayments from stone and coal concession holding companies.
Net debt was reduced to USD166.7 million on December 31 from USD175.7 million a year before.
"Subject to [crude palm oil] and [crude palm kernel oil] prices remaining at remunerative levels, the group should continue to generate good cash flows which should be augmented by further loan repayments from the coal and stone concession holding companies," said Chair David Blackett.
"The directors expect therefore to continue building on the improvement in the group's operational and financial position."
REA declared no dividend on ordinary shares for 2022.
Shares in REA were up 3.0% at 107.11 pence in London on Thursday.
By Emma Curzon, Alliance News reporter
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