Sipef (SIP) Q1 2026 earnings summary

Executive summary

• Strong start to 2026 with palm oil production up 7.3% and banana production up 2.9% year-over-year, driven by Indonesia and Papua New Guinea.

• South Sumatra emerged as a key growth driver, with significant increases in both own and plasma production.

• Papua New Guinea continues recovery from the 2023 volcanic eruption, with robust plantation performance.

• Favourable palm oil markets and disciplined execution underpin expectations for 2026 results to match 2025's record performance.

Financial highlights

• 44% of projected palm oil volumes for 2026 secured at an average ex-mill gate price of USD 1,046/tonne, up from 38% at USD 1,030/tonne in 2025.

• Benchmark CPO futures rose from USD 990 to USD 1,069/tonne during Q1 2026.

• Recurrent net profit (Group share) for 2026 expected to be broadly in line with 2025's record results.

Outlook and guidance

• Full-year palm oil production expected at approximately 470,000 tonnes, subject to weather.

• Banana production projected to recover in Q2, with improved flowering and crop conditions.

• Favourable pricing environment expected to persist, but input cost inflation and geopolitical risks remain key uncertainties.