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

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

All operations in all periods are continuing.

CONSOLIDATED BALANCE SHEET

AS AT 30 JUNE 2026