R.E.A. Holdings plc, GB0002349065

R.E.A. Holdings plc: Half yearly results

Published on 09/23/2026 at 08:00 | dgap, AD HOC NEWS

R.E.A. Holdings plc / GB0002349065

R.E.A. Holdings plc (RE.)


23-Sep-2026 / 07:00 GMT/BST


R.E.A. Holdings plc (“REA” or the “company”)   REA today publishes the group’s half yearly report for the six months to 30 June 2026. Click the link at the end of this announcement to download a PDF of the report.   The 2026 half yearly report will also be available shortly at www.rea.co.uk/investors/financial-reports.     HIGHLIGHTS   Overview   Agricultural operations performing well with the benefits of the replanting programme increasingly apparent Increase in profitability and EBITDA, despite uncertainties surrounding CPO export regulations impacting both sales and selling prices in the period Mining activities and product demand building Balance sheet continues to strengthen as debt profile improves   Financial   Revenue of $88.6 million (2025: $92.4 million), reflecting delays by customers in taking deliveries of CPO over the period which are now being caught up Firm average selling prices for CPO and CPKO of, respectively, $853 per tonne (2025: $856 per tonne), and $1,759 per tonne (2025: $1,657 per tonne) EBITDA of $35.2 million (2025: $33.4 million) and operating profit of $23.3 million (2025: $19.2 million) Profit before tax of $25.9 million, including exchange gain of $7.2 million (2025: profit of $5.9 million including exchange loss of $2.4 million and $5.7 million loss on disposal of CDM) Net cash from operating activities increased to $19.6 million (2025: $5.8 million) New Indonesian bank facilities of $38.9 million to finance replanting and dollar note redemption further reducing dependence on non-Indonesian funding sources Repurchase of $7.2 million nominal of the outstanding $27.0 million 7.5 per cent dollar notes 2028 Group net indebtedness reduced to $147.6 million at 30 June 2026 (31 December 2025: $152.3 million) with an improved maturity profile   Agricultural operations   Total FFB harvested of 421,588 tonnes (2025: 425,061 tonnes), with the reduction in the group’s own crop due to replanting substantially offset by increased purchases of third party FFB CPO extraction rate maintained above 22 per cent Oil losses comfortably below industry norms Replanting and extension planting proceeding in line with 2026 targets   Mining operations   ATP stone production building towards satisfying contracted demand totalling approximately 1 million tonnes by the end of 2027 Commissioning trials of MCU’s sand washing plant completed; initial sand sale of 15,000 tonnes to a local customer and good potential demand from both international and local customers   New initiative   Memorandum of understanding reached for mining by a neighbouring coal company within an area of approximately 560 hectares overlapping REA Kaltim estates, generating substantial long-term access fee revenues while preserving future use of the land following completion of mining operations   Sustainability and climate   100 per cent of the group’s own plantations retaining RSPO certification Programmes supporting responsible production, forest and biodiversity protection and smallholder engagement continuing to strengthen the group’s sustainability performance, climate action and supply chain integrity   Outlook   Encouraging outlook for palm product prices, supported by strong demand for vegetable oils, the continued expansion of Indonesian biodiesel programmes and constraints on growth in global oil palm hectarage Stronger CPO and CPKO prices resulting from reduced regional production largely offsetting the potential adverse, albeit limited, impact on group crops of the developing El Niño event Investment in replanting and extension planting progressing well with the current programme expected to substantially complete in 2028 leading to a significant uplift in future production Group positioned to deliver long-term value for shareholders through recent balance sheet initiatives, remunerative palm product prices and positive prospects for the mining operations     STATEMENT FROM THE MANAGING DIRECTOR   Commenting on the results, Luke Robinow, managing director, said: “H1 was a period of solid operational performance, delivering growth in profitability due to firm, sustained pricing of palm products. We successfully navigated some challenges resulting from market uncertainty around the export of Indonesian palm products. The stabilisation of the market and subsequent unwinding of our inventory position is expected to underpin our full year performance. In addition, our mining operations have continued to build.   I am particularly pleased with the recent agreement to allow access to 560 hectares of land to a neighbouring coal company that is expected to generate substantial income over a twelve year mining period.   Importantly, we also made good progress in line with our strategic goal of increasing hectarage and yields through the expansion and replanting programme which will make material contributions in the coming years. The additional cash flow from this programme will be used to pay down debt, adding significant shareholder value in the process.”     CONSOLIDATED INCOME STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2026  
  30 June 30 June 31 December
  2026 2025 2025
  $’000 $’000 $’000
Revenue 88,608 92,410 194,944
Net gain / (loss) arising from changes in fair value of biological assets 642 478 (730)
Cost of sales (57,881) (63,829) (136,513)
Gross profit 31,369 29,059 57,701
Distribution costs (669) (507) (1,185)
Administrative expenses (7,366) (9,334) (16,229)
Operating profit 23,334 19,218 40,287
Interest income 139 701 995
Losses on disposal of subsidiaries and similar charges (5,723) (6,280)
Other gains / (losses) 7,526 (2,428) 2,460
Finance costs (5,115) (5,911) (13,430)
Profit before tax 25,884 5,857 24,032
Tax (9,506) (8,444) (9,754)
Profit / (loss) for the period 16,378 (2,587) 14,278
       
Attributable to:      
Equity shareholders 9,034 (2,425) 8,483
Non-controlling interests 7,344 (162) 5,795
  16,378 (2,587) 14,278
       
Profit / (loss) per 25p ordinary share (US cents)      
Basic 10.9 (15.6) (0.7)
  All operations in all periods are continuing.     CONSOLIDATED BALANCE SHEET AS AT 30 JUNE 2026  
  30 June 30 June 31 December
  2026 2025 2025
  $’000 $’000 $’000
Non-current assets      
Goodwill 11,144 11,144 11,144
Intangible assets 1,791 2,331 2,147
Property, plant and equipment 406,438 372,280 395,114
Land 56,965 54,295 51,951
Financial assets 5,330 24,902 10,308
Non-financial assets 5,924 11,030
Deferred tax assets 9,877 16,364 13,878
Total non-current assets 497,469 481,316 495,572
Current assets      
Inventories 31,959 25,403 19,212
Biological assets 3,250 3,816 2,608
Trade and other receivables 37,164 39,996 35,965
Current tax asset 1,838 1,243 2,215
Restricted cash at bank 3,995 4,412 4,267
Cash and cash equivalents 22,630 50,796 18,973
Total current assets 100,836 125,666 83,240
Total assets 598,305 606,982 578,812
Current liabilities      
Trade and other payables (45,559) (33,552) (40,583)
Bank loans (26,528) (24,068) (22,894)
Sterling notes (30,429)
Dollar notes (26,829) (9,430)
Other loans and payables (1,832) (8,649) (1,832)
Total current liabilities (73,919) (123,527) (74,739)
Non-current liabilities      
Bank loans (128,692) (132,944) (125,952)
Dollar notes (18,983) (17,221)
Deferred tax liabilities (53,073) (50,923) (49,821)
Other loans and payables (9,628) (11,129) (9,816)
Total non-current liabilities (210,376) (194,996) (202,810)
Total liabilities (284,295) (318,523) (277,549)
Net assets 314,010 288,459 301,263
       
Equity      
Share capital 133,590 133,590 133,590
Share premium account 27,193 47,374 27,193
Translation reserve (40,263) (25,824) (40,909)
Retained earnings 109,798 62,960 105,041
  230,318 218,100 224,915
Non-controlling interests 83,692 70,359 76,348
Total equity 314,010 288,459 301,263
    CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2026  
  30 June 30 June 31 December
  2026 2025 2025
  $’000 $’000 $’000
Net cash from operating activities 19,599 5,770 41,648
       
Investing activities      
Interest received 139 701 995
Proceeds on disposal of PPE 55 1,056
Purchases of intangible assets and PPE (17,704) (16,040) (34,394)
Expenditure on land (240) (664) (1,489)
Net investment sand interest (3,070) (1,132)
Net cash movement on acquisition of new subsidiary 24 (1,956)
Net proceeds on disposal of group company 7,993 7,993
Prepayments in respect of non-current assets (208) (10,889)
Net cash used in investing activities (17,934) (11,080) (39,816)
       
Financing activities      
Preference dividends paid (4,241) (4,414) (8,782)
Repayment of bank borrowings (9,666) (9,804) (19,660)
New bank borrowings drawn 24,830 47,570 53,651
Decrease in restricted cash at bank 272 1,420 1,565
Purchase of dollar notes held in treasury (7,264)
Purchase of sterling notes for cancellation (381) (381)
Redemption of sterling notes (30,009)
Repayment of borrowings from non-controlling shareholder (8,750) (8,750)
Cost of capital reduction (181)
Repayment of lease liabilities (1,467) (1,500) (3,075)
Net cash from / (used in) financing activities 2,464 24,141 (15,622)
       
Cash and cash equivalents      
Net increase / (decrease) in cash and cash equivalents 4,129 18,831 (13,790)
Cash and cash equivalents at beginning of period 18,973 33,005 33,005
Effect of exchange rate changes (472) (1,040) (242)
Cash and cash equivalents at end of period 22,630 50,796 18,973
        Enquiries: R.E.A. Holdings plc Tel: +44 (0)20 7436 7877

Attachment

File: REA Half yearly report 2026


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