Half-year Financial Report
2 September 2026
AEP Plantations Plc
("AEP", "Group" or "Company")
Interim results for the six months ended 30 June 2026
AEP Plantations Plc, which owns, operates and develops plantations in Indonesia and Malaysia, is pleased to announce its unaudited results for the six months ended 30 June 2026.
Highlights
· On 4 May 2026, the Group completed the $158.3 million acquisition of Pinago in South Sumatera, Indonesia, adding 14,300 hectares of mature plantation.
· Group revenue increased by 8.3% to $249.7 million and profit before tax by 5.1% to $65.8 million, including a $9.1 million non-recurring gain arising from the Pinago acquisition
· The average ex-mill CPO price was $853/mt (-1.2%) and palm kernel price was $793/mt (+7.4%).
· The Group maintained cash and cash equivalents of $109.5 million and bank borrowings of $13.2 million, following the Pinago acquisition.
· Board intention to declare an interim dividend by the end of the third quarter of this year.
· $25.9 million returned to shareholders through dividends and share buybacks during the period.
AEP Chairman, Jonathan Law, commented:
"I am pleased to report a strong set of results for AEP, with revenue up 8.3% and profit before tax up 5.1%, reflecting our Pinago acquisition completed in May.
We expect the production trend to improve in the second half of the year, and with CPO prices likely to remain elevated in the coming months, the Board is optimistic that the Group will deliver a robust performance in the second half of the year."
Enquiries:
AEP Plantations Plc
+44 (0) 20 7216 4621
Marcus Chan Jau Chwen, Executive Director (Corporate Affairs)
Kevin Wong Tack Wee, Group Chief Executive Officer
Montfort Communications Limited - Financial PR
aep@montfort.london
Ann-marie Wilkinson, Shireen Farhana
Cavendish Capital Markets Limited - Financial Adviser and Broker
+44 (0) 20 7220 0500
Matt Goode, George Lawson, Trisyia Jamaludin (Corporate Finance)
Will Smith, Harriet Ward (Corporate Broking)
Introduction
The first half of 2026 marked an important milestone for the Group. On 4 May, we completed the acquisition of the PT AEP Pinago Plantations Tbk (formerly known as PT Pinago Utama Tbk) and its subsidiaries ("Pinago"), adding 14,300 hectares of mature plantation and increasing our total planted area to 87,392 hectares, more than a quarter higher than at the year end. In 2025, Pinago reported revenue of $135 million, profit before tax of $24.5 million, and profit after tax of $18 million.
The consideration for the acquisition of $158 million was funded entirely from existing cash resources. At the same time, we continued to return capital to shareholders, with $25.9 million paid through dividends and share buybacks during the period.
We continued the largest replanting programme in the Company's history. We advanced construction of our ninth mill at KAP Estate, and shortly after the period end we completed the acquisition of PT Jaya Jadi Utama, whose land sits immediately adjacent to that mill.
Delivering this combination of growth, financial strength and shareholder returns reflects the balance sheet discipline we have maintained over many years. It also demonstrates our approach to capital allocation: investing in high-quality assets that strengthen the business, while maintaining a prudent financial position and returning capital to shareholders where appropriate.
Financial Highlights
2026
6 months to 30 June
$ million
2025
6 months to 30 June
$ million
Variance
(%)
2025
Year Ended 31 December
$ million
Revenue
249.7
230.5
8.3%
465.2
Gross profit
62.8
62.8
0%
123.8
Profit before tax*
65.8
62.6
5.1%
119.3
Profit after tax
48.9
48.8
0.2%
86.3
EPS*
12.71cts
12.33cts
3.1%
23.14cts
*Note:
1. Profit before tax for the six months ended 30 June 2026 includes a gain on bargain purchase of $9.1 million arising from the acquisition of PT AEP Pinago Plantations Tbk and its subsidiaries.
2. EPS has been retrospectively adjusted for the 10-for-1 share split completed on 25 June 2026.
Average CPO Ex-mill price per mt
$853
$863
-1.2%
$853
Average PK Ex-mill price per mt
$793
$738
7.4%
$739
Operational Highlights
Unit
2026
6 months to 30 June
2025
6 months to 30 June
Variance (%)
2025
Year Ended 31 December
FFB production
('000 mt)
544.7
530.4
2.7%
1,080.6
Mature plantation
('000 ha)
74.5
61.5
21.1%
59.6
Mill FFB processed
('000 mt)
1,121.7
1,085.3
3.4%
2,146.7
Internal FFB source
('000 mt)
451.9
491.8
-8.1%
976.6
External FFB source
('000 mt)
669.8
593.5
12.9%
1,170.1
CPO production
('000 mt)
223.6
214.3
4.3%
425.8
PK production
('000 mt)
55.5
52.7
5.3%
105.9
OER
19.9%
19.7%
19.8%
KER
4.9%
4.9%
4.9%
Our own FFB production rose 2.7% to 544,700 mt (2025: 530,400 mt) mainly driven by stronger production in Kalimantan and the inclusion of two months of FFB production of 29,000 mt from Pinago. This was partially offset by a delayed cropping cycle, and the ongoing replanting programme in North Sumatra and Riau during the first half of the year. Production has returned to an upward trend since June.
External FFB purchases increased by 12.9% year-on-year to 669,800 mt primarily contributed by Pinago's purchases in May and June of 45,200 mt. Excluding Pinago, external FFB purchases increased by 5.2% compared with the corresponding period last year.
CPO production rose 4.3% to 223,600 mt (2025: 214,300 mt) and palm kernel production rose 5.3% to 55,500 tonnes. The oil extraction rate improved to 19.9% from 19.7%, which on the volumes we processed, converts directly into additional oil at no additional cost of planting or harvesting.
Excluding Pinago, FFB yield was 9.1 mt/ha, comparable to the corresponding period last year. Pinago recorded an FFB yield of 2.5 mt/ha for the two-month period since its acquisition in May 2026.
The mature plantation area, including plasma, increased to 74,200 ha, from 61,500 ha as at 30 June 2025, mainly reflecting the addition of 14,300 ha of mature plantations from Pinago.
Pinago
During the period, we completed the acquisition of Pinago, adding 15,118 hectares of planted oil palm, 3,590 hectares of planted rubber and integrated milling capacity, and taking our total planted area to 87,392 hectares. In 2025, Pinago reported revenue of $135 million, profit before tax of $24.5 million, and profit after tax of $18 million.
Following the completion of the acquisition, Pinago's results for May and June 2026 have been consolidated into the Group's results, as follows:
Unit
May - June
2026
Own FFB production
mt
29,000
External FFB purchased
mt
45,200
CPO production
mt
16,200
PK production
mt
3,200
Pinago provides AEP with a sizeable and established plantation platform in South Sumatra, supported by integrated palm oil and rubber-processing facilities. The oil palms have an average age of approximately 10 years, with around 74% mature and 26% immature, while the rubber trees average approximately 12 years, with 77% mature and 23% immature. This age profile provides an established production base together with meaningful future growth potential as immature plantings mature and enter production.
There is also material potential to improve oil-palm yields through enhanced fertiliser application, greater harvesting mechanisation, improved estate management and infrastructure maintenance. Further production growth is expected to come from the maturation of existing plantings, new planting opportunities and the selective replanting of older trees.
From the acquisition date to the end of the reporting period, Pinago contributed revenue of $18.3 million and profit before tax of $3.5 million.
On 21 August 2026, the Group completed the mandatory tender offer ("MTO") for shares in PT AEP Pinago Plantations Tbk ("Pinago"). Under the MTO, the Group acquired an additional 9,484,700 shares, representing approximately 1.21% of Pinago's issued share capital, at Rp3,584 per share, for a total purchase consideration of approximately US$1.9 million. Following completion of the MTO, the Group's ownership interest in Pinago increased from 98.26% to approximately 99.48%. Including the initial acquisition consideration of approximately $158.3 million, the Group's total consideration for its approximately 99.48% interest in Pinago amounted to approximately $160.2 million.
PT Jaya Jadi Utama
Subsequent to the reporting date, the Group completed the acquisition of Admiral Potential Sdn Bhd, which owns 100% of PT Jaya Jadi Utama ("PT JJU"). PT JJU holds 7,169 hectares of HGU in Central Kalimantan, adjacent to the Group's KAP estate. The acquisition is expected to support FFB supply to the KAP mill and provide additional capacity for future growth.
Development
The Group's planted areas on 30 June 2026 comprised:
Total
Mature
Immature
Ha
ha
Ha
North Sumatera
18,852
16,962
1,890
Bengkulu
16,112
11,957
4,155
Riau
4,232
3,732
500
South Sumatera
15,118
11,523
3,595
Kalimantan
19,016
17,923
1,093
Bangka
2,826
2,632
194
Rubber
3,590
2,743
847
Indonesia
79,746
67,472
12,274
Malaysia
3,414
3,414
-
Total Planted Area
83,160
70,886
12,274
Plasma
4,232
3,345
887
Total: 30 June 2026 (including Plasma)
87,392
74,231
13,161
Total: 31 December 2025
69,324
59,646
9,678
Total: 30 June 2025
69,100
61,479
7,621
New Planting and Replanting
At the end of last year around 22% of our palms were classified as old and the average palm age across the estate was 14 years, against a target of 12. Our response is a 10,000 hectare replanting programme running to 2030, replacing older palm trees with higher yielding, more disease resistant varieties. We replanted a record 2,440 hectares last year. In the first half of 2026, we completed 1,227 hectares of planting, comprising 844 hectares of replanting and 383 hectares of new planting, together with 27 hectares of plasma planting. We remain on track to complete the 2,750 hectares by the end of 2026.
Construction of the Group's ninth mill at KAP Estate in Kalimantan is progressing as planned, with commissioning scheduled for December 2026. As at end of June 2026, building and structural works were 85% complete, civil works 60% complete, and mechanical machinery fully fabricated, with delivery expected by end of August 2026. The mill will support approximately 6,400 hectares of maturing Kalimantan palms and increase the Group's milling capacity by 45mt/hr.
Update on Listing of Kalimantan Subsidiary
The proposed Initial Public Offering of PT AEP Nusantara Plantations Tbk on the Indonesian Stock Exchange ("IPO") is currently being considered for listing in 2027, subject to prevailing market conditions and obtaining relevant regulatory approvals.
Indonesian Government Commodity Export Proposals
During the period, the Indonesian Government announced its intention to strengthen the oversight of strategic commodity exports through PT Danantara Sumberdaya Indonesia ("DSI"), initially covering palm oil, coal and ferroalloys. Subsequent announcements have provided greater clarity on the proposed arrangements. DSI commenced operations on 1 June 2026 and, from 1 September 2026, introduced an export governance platform designed to improve transparency and consolidate export and commercial data with information from relevant government agencies. Importantly, exporters will continue to manage their existing commercial relationships and deal directly with overseas customers, with DSI acting as an intermediary to facilitate and monitor export transactions rather than as a trader. The current arrangements are expected to remain in place until the end of 2026 with full implementation targeted by end of the year. The Group continues to monitor developments as the framework evolves.
Financial Review
For the six months ended 30 June 2026, revenue increased by 8.3% to $249.7 million (2025: $230.5 million)
Administrative expenses increased to $10.5 million from $4.7 million, mainly due to higher corporate expenses, including acquisition-related costs for Pinago and PT Jaya Jadi Utama, and the inclusion of two months of expenses from Pinago.
Profit before tax increased by 5.1% to $65.8 million (2025: $62.6 million) including $1.1 million contribution by Pinago and a $9.1 million non-recurring gain arising from the acquisition.
Excluding the non-recurring gain, underlying profit before tax was 9% lower than the corresponding period last year, driven by the delayed cropping cycle in North Sumatra and replanting in Riau, partly offset by higher production in Kalimantan.
Profit for the period attributable to owners of the parent increased slightly to $48.9 million (2025: $48.8 million).
Basic earnings per share for the six months ended 30 June 2026 stood at 12.71 cts (2025: 12.33 cts), an increase of 3.1%.
The Group's bank borrowings stood at $13.2 million as at 30 June 2026 (30 June 2025: nil), arising from the consolidation of Pinago Group's borrowings following the acquisition.
As at 30 June 2026, the Group held cash and cash equivalents, including short-term bank deposits, of $109.5 million (2025: $244.7 million). The decrease mainly reflected $158.3 million deployed for the Pinago acquisition, together with $14.6 million in capital expenditure and $9.1 million in share buybacks, with $41.7 million in cash generated from operations.
Net assets stood at $579.4 million (2025: $584.8 million), supported by profit for the period of $48.9 million. During the period, the Group returned $25.9 million to shareholders through dividends of $16.8 million and share buybacks of $9.1 million, while foreign currency translation losses of $32.1 million arising from the weakening of the Indonesian Rupiah against the US Dollar impacted net assets.
Dividend and Share BuybackThe final dividend of 4.37 cents per share (adjusted for the 10-for-1 share split) in respect of the year ended 31 December 2025 was paid on 30 July 2026.
The Board will declare an interim dividend by the end of the third quarter of this year.
During the period, the Group repurchased 4,214,840 ordinary shares (adjusted for the 10-for-1 share split) for $9.1 million under its 2026 share buyback programme.
Outlook
CPO prices are expected to remain firm for the remainder of 2026, supported by sustained demand from the food and energy sectors. In Indonesia, domestic CPO consumption continues to be underpinned by the biodiesel programme, which is expected to provide continued support to CPO demand and prices.
While increased production and inventory levels may temper further price gains, resilient demand from key importing markets, alongside geopolitical uncertainties and weather-related risks including potential supply disruptions associated with El Niño, is expected to provide support for CPO prices. The Group will also benefit from a full six months' trading from Pinago.
We continue to assess a pipeline of brownfield opportunities in Indonesia against strict financial, operational and sustainability criteria. The Group remains confident in the long-term demand fundamentals for CPO and we remain confident of achieving market expectations for the full year.
Condensed Consolidated Income Statement
Notes
2026
6 months to 30 June
(unaudited)
2025
6 months to 30 June
(unaudited)
2025
Year to 31 December
(audited)
$000
$000
$000
Revenue
3
249,728
230,466
465,211
Cost of sales
(189,495)
(168,043)
(339,982)
Changes in fair value of biological assets
2,610
416
(1,408)
Gross profit
62,843
62,839
123,821
Administration expenses
(10,457)
(4,699)
(14,186)
Other income
1,089
732
1,315
Gain on bargain purchase
9,062
-
-
Reversal of impairment loss
-
-
710
(Loss)/gain arising from fair value of investments
(4)
297
(107)
Operating profit
62,533
59,169
111,553
Exchange gains/(loss)
834
266
(176)
Finance income
4
2,657
3,141
7,997
Finance expense
4
(190)
(25)
(44)
Profit before tax
5
65,834
62,551
119,330
Tax expense
6
(16,911)
(13,748)
(33,015)
Profit for the period
48,923
48,803
86,315
Profit for the period attributable to:
- Owners of the parent
48,981
48,660
90,882
- Non-controlling interests
(58)
143
(4,567)
48,923
48,803
86,315
Earnings per share for profit attributable to the owners of the parent during the period
- basic and diluted
8
12.71cts
12.33cts
23.14cts
Condensed Consolidated Statement of Comprehensive Income
2026
2025
2025
6 months
6 months
Year
to 30 June
to 30 June
to 31 December
(unaudited)
(unaudited)
(audited)
$000
$000
$000
Profit for the period
48,923
48,803
86,315
Other comprehensive loss:
Items may be reclassified to profit or loss:
Loss on exchange translation of foreign operations
(32,085)
(1,538)
(15,696)
Net other comprehensive loss may be reclassified to profit or loss
(32,085)
(1,538)
(15,696)
Items not to be reclassified to profit or loss:
Remeasurement of retirement benefits plan, net of tax
152
-
1,852
Net other comprehensive income not being reclassified to profit or loss
152
-
1,852
Total other comprehensive loss for the period, net of tax
(31,933)
(1,538)
(13,844)
Total comprehensive income for the period
16,990
47,265
72,471
Attributable to:
- Owners of the parent
17,148
46,897
75,660
- Non-controlling interests
(158)
368
(3,189)
16,990
47,265
72,471
Condensed Consolidated Statement of Financial Position
2026
2025
2025
Notes
as at 30 June
as at 30 June
as at 31 December
(unaudited)
(unaudited)
(audited)
$000
$000
$000
Non-current assets
Property, plant and equipment
451,825
272,276
272,547
Intangible assets
680
-
262
Investments in associates
1
-
1
Investments
9
41
9,405
45
Receivables
19,909
21,007
17,800
Deferred tax assets
513
1,991
974
Defined benefit assets
1,875
-
-
474,844
304,679
291,629
Current assets
Inventories
44,826
23,604
27,652
Income tax receivables
5,562
18,316
4,992
Other tax receivables
34,679
29,002
41,863
Biological assets
9,862
8,448
6,383
Trade and other receivables
11,821
8,078
9,045
Investments
9
4,000
18,000
22,000
Short-term investments
-
-
500
Cash and cash equivalents
109,511
244,697
231,845
220,261
350,145
344,280
Total assets
695,105
654,824
635,909
Current liabilities
Bank loans
(8,681)
-
-
Trade and other payables
(39,130)
(27,118)
(28,356)
Income tax liabilities
(5,993)
(5,466)
(10,173)
Other tax liabilities
(4,187)
(3,142)
(814)
Dividend payables
(16,826)
(20,137)
(65)
Lease liabilities
(324)
(249)
(202)
(75,141)
(56,112)
(39,610)
Net current assets
145,120
294,033
304,670
2026
2025
2025
as at 30 June
as at 30 June
as at 31 December
(unaudited)
(unaudited)
(audited)
$000
$000
$000
Non-current liabilities
Bank loans
(4,533)
-
-
Deferred tax liabilities
(27,280)
(2,401)
(3,062)
Retirement benefits - net liabilities
(8,198)
(11,168)
(7,972)
Lease liabilities
(542)
(392)
(338)
(40,553)
(13,961)
(11,372)
Net assets
579,411
584,751
584,927
Issued capital and reserves attributable to owners of the parent
Share capital
15,504
15,504
15,504
Treasury shares
(22,951)
(3,368)
(13,840)
Share premium
23,935
23,935
23,935
Capital redemption reserve
1,087
1,087
1,087
Exchange reserves
(413,458)
(366,165)
(381,476)
Retained earnings
967,846
905,963
935,479
571,963
576,956
580,689
Non-controlling interests
7,448
7,795
4,238
Total equity
579,411
584,751
584,927
Condensed Consolidated Statement of Changes in Equity
Attributable to owners of the parent
Share
capital
Treasury
shares
Share
premium
Capital
redemption
reserve
Exchange
Reserves
Retained
earnings
Total
Non-controlling
interests
Total
equity
Note
$000
$000
$000
$000
$000
$000
$000
$000
$000
Balance at 31 December 2024
15,504
(2,487)
23,935
1,087
(364,402)
877,394
551,031
7,427
558,458
Items of other comprehensive (loss)/income:
-Remeasurement of retirement benefits plan, net of tax
-
-
-
-
-
1,852
1,852
-
1,852
-(Loss)/gain on exchange translation of foreign operations
-
-
-
-
(17,074)
-
(17,074)
1,378
(15,696)
Total other comprehensive (loss)/income
-
-
-
-
(17,074)
1,852
(15,222)
1,378
(13,844)
Profit/(loss) for the year
-
-
-
-
-
90,882
90,882
(4,567)
86,315
Total comprehensive (loss)/income for the year
-
-
-
-
(17,074)
92,734
75,660
(3,189)
72,471
Share buy back
-
(11,353)
-
-
-
-
(11,353)
-
(11,353)
Dividends paid
-
-
-
-
-
(34,649)
(34,649)
-
(34,649)
Balance at 31 December 2025
15,504
(13,840)
23,935
1,087
(381,476)
935,479
580,689
4,238
584,927
Items of other comprehensive (loss)/income:
-Remeasurement of retirement benefits plan, net of tax
-
-
-
-
-
149
149
3
152
-(Loss)/income on exchange translation of foreign operations
-
-
-
-
(31,982)
-
(31,982)
(103)
(32,085)
Total other comprehensive (loss)/income
-
-
-
-
(31,982)
149
(31,833)
(100)
(31,933)
Profit for the period
-
-
-
-
-
48,981
48,981
(58)
48,923
Total comprehensive (loss)/income for the period
-
-
-
-
(31,982)
49,130
17,148
(158)
16,990
Non-controlling interests arising from acquisition
-
-
-
-
-
-
-
3,368
3,368
Share buy back
-
(9,111)
-
-
-
-
(9,111)
-
(9,111)
Dividends payable
-
-
-
-
-
(16,763)
(16,763)
-
(16,763)
Balance at 30 June 2026
15,504
(22,951)
23,935
1,087
(413,458)
967,846
571,963
7,448
579,411
Attributable to owners of the parent
Share
capital
Treasury
shares
Share
premium
Capital
redemption
reserve
Exchange
reserves
Retained
earnings
Total
Non-controlling
interests
Total
Equity
$000
$000
$000
$000
$000
$000
$000
$000
$000
Balance at 31 December 2024
15,504
(2,487)
23,935
1,087
(364,402)
877,394
551,031
7,427
558,458
Items of other comprehensive (loss)/income:
-Remeasurement of retirement benefits plan, net of tax
-
-
-
-
-
-
-
-
-
-(Loss)/income on exchange translation of foreign operations
-
-
-
-
(1,763)
-
(1,763)
225
(1,538)
Total other comprehensive (loss)/income
-
-
-
-
(1,763)
-
(1,763)
225
(1,538)
Profit for the period
-
-
-
-
-
48,660
48,660
143
48,803
Total comprehensive (loss)/income for the period
-
-
-
-
(1,763)
48,660
46,897
368
47,265
Share buy back
-
(881)
-
-
-
-
(881)
-
(881)
Dividends payable
-
-
-
-
-
(20,091)
(20,091)
-
(20,091)
Balance at 30 June 2025
15,504
(3,368)
23,935
1,087
(366,165)
905,963
576,956
7,795
584,751
Condensed Consolidated Statement of Cash Flows
2026
2025
2025
6 months
6 months
Year
to 30 June
to 30 June
to 31 December
(unaudited)
(unaudited)
(audited)
$000
$000
$000
Cash flows from operating activities
Profit before tax
65,834
62,551
119,330
Adjustments for:
Changes in fair value of biological assets
(2,610)
(416)
1,408
Gain on disposal of property, plant and equipment
(17)
(68)
(95)
Depreciation
12,378
9,226
18,958
Retirement benefit provisions
913
1,020
2,247
Finance income
(2,657)
(3,141)
(7,997)
Finance expense
190
25
44
Unrealised gain in foreign exchange
(10)
(58)
(23)
Loss/(gain) arising from fair value
4
(297)
107
Property, plant and equipment written off
433
-
904
Reversal of impairment loss
-
-
(710)
(Reversal)/provision for expected credit loss
(101)
4
(85)
Gain on bargain purchase
(9,062)
-
-
Operating cash flows before changes in working capital
65,295
68,846
134,088
Increase in inventories
(10,697)
(4,857)
(9,749)
Increase in non-current, trade and other receivables
(5,737)
(3,889)
(1,499)
Increase in trade and other payables
7,780
5,826
7,503
Cash inflows from operations
56,641
65,926
130,343
Retirement benefits paid
(465)
(881)
(2,615)
Overseas tax (paid)/refund
(14,478)
2,601
(13,903)
Net cash generated from operating activities
41,698
67,646
113,825
2026
2025
2025
6 months
6 months
Year
to 30 June
to 30 June
to 31 December
(unaudited)
(unaudited)
(audited)
$000
$000
$000
Investing activities
Acquisition of new subsidiaries
(158,342)
-
-
Cash and cash equivalents acquired on acquisition
2,837
-
-
Acquisition of associates
-
-
(1)
Property, plant and equipment
- purchases
(14,648)
(11,238)
(29,922)
- sale proceeds
69
228
325
Intangible asset
- purchases
(450)
-
(262)
Interest received
2,657
3,141
7,997
Additions to receivables from cooperatives under Plasma scheme
(159)
(382)
(2,181)
Repayment from cooperatives under Plasma scheme
280
915
3,110
Investment in investment portfolio
-
(30,018)
(29,068)
Disposal of investment portfolio
18,000
31,997
36,003
Placement of fixed deposits with original maturity of more than three months
-
-
(500)
Withdrawal of fixed deposits with original maturity of more than three months
500
1,253
1,253
Net cash used in investing activities
(149,256)
(4,104)
(13,246)
Financing activities
Dividends paid to the holders of the parent
(2)
-
(34,630)
Repayment of lease liabilities - principal
(186)
(155)
(321)
Repayment of lease liabilities - interest
(23)
(25)
(44)
Repayment of bank loans
(114)
-
-
Share buy back
(9,111)
(881)
(11,353)
Net cash used in financing activities
(9,436)
(1,061)
(46,348)
Net (decrease)/increase in cash and cash equivalents
(116,994)
62,481
54,231
Cash and cash equivalents
At beginning of period
231,845
181,908
181,908
Exchange (loss)/gain
(5,340)
308
(4,294)
At end of period
109,511
244,697
231,845
Comprising:
Cash at end of period
109,511
244,697
231,845
Notes to the interim statements
1. Basis of preparation of interim financial statements
These interim consolidated financial statements have been prepared in accordance with IAS 34, "Interim Financial Reporting" as issued by the International Accounting Standards Board ('IASB') and as adopted by the United Kingdom. They do not include all disclosures that would otherwise be required in a complete set of financial statements and should be read in conjunction with the 2025 Annual Report. The financial information for the half years ended 30 June 2026 and 30 June 2025 does not constitute statutory accounts within the meaning of Section 434(3) of the Companies Act 2006 and has been neither audited nor reviewed pursuant to guidance issued by the Auditing Practices Board.
Basis of preparation
The annual financial statements of AEP Plantations Plc are prepared in accordance with UK adopted International Accounting Standards. The comparative financial information for the year ended 31 December 2025 included within this report does not constitute the full statutory accounts for that period. The statutory Annual Report and Financial Statements for 2025 have been filed with the Registrar of Companies. The Independent Auditors' Report on the Annual Report and Financial Statements for 2025 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under Sections 498(2) or 498(3) of the Companies Act 2006.
The Directors have a reasonable expectation, having made the appropriate enquiries, that the Group has control of the monthly cashflows and that the Group has sufficient cash resources to cover the fixed cashflows for a period of at least 12 months from the date of approval of this interim report. For these reasons, the Directors adopted a going concern basis in the preparation of the interim report. The Directors have made this assessment after consideration of the Group's budgeted cash flows and related assumptions including appropriate stress testing of identified uncertainties. Stress testing of other identified uncertainties was undertaken on primarily commodity prices and currency exchange rates.
Changes in accounting standards
The same accounting policies, presentation and methods of computation are followed in these condensed consolidated financial statements as were applied in the Group's latest annual audited financial statements.
2. Foreign exchange
2026
2025
2025
6 months
6 months
Year
to 30 June
to 30 June
to 31 December
(unaudited)
(unaudited)
(audited)
Closing exchange rates
Rp : $
17,856
16,233
16,782
$ : £
1.3273
1.37
1.35
RM : $
4.07
4.22
4.06
Average exchange rates
Rp : $
17,197
16,428
16.475
$ : £
1.3453
1.30
1.32
RM : $
3.9854
4.38
4.28
3. Revenue
Disaggregation of Revenue
The Group has disaggregated revenue into various categories in the following table which is intended to:
• Depict how the nature, amount and uncertainty of revenue and cash flows are affected by timing of revenue recognition; and
• Enable users to understand the relationship with revenue segment information provided in note 5.
6 months to 30 June 2026
CPO and palm kernel
FFB
Rubber
Shell nut
Biogas products
Others
Total
$000
$000
$000
$000
$000
$000
$000
Contract counterparties
Government
-
-
-
-
231
-
231
Non-government
- Wholesalers
225,810
19,016
2,339
2,329
-
3
249,497
225,810
19,016
2,339
2,329
231
3
249,728
Timing of transfer of goods
Delivery to customer premises
-
19,016
2,339
-
-
-
21,355
Delivery to port of departure
48,204
-
-
-
-
-
48,204
Customers collect from our mills/estates
177,606
-
-
2,329
-
-
179,935
Upon generation/others
-
-
-
-
231
3
234
225,810
19,016
2,339
2,329
231
3
249,728
6 months to 30 June 2025
CPO and palm kernel
FFB
Rubber
Shell nut
Biogas products
Others
Total
$000
$000
$000
$000
$000
$000
$000
Contract counterparties
Government
-
-
-
219
-
219
Non-government
- Wholesaler
219,812
7,659
-
2,772
-
4
230,247
219,812
7,659
-
2,772
219
4
230,466
Timing of transfer of goods
Delivery to customer premises
7,659
-
-
-
-
7,659
Delivery to port of departure
35,885
-
-
-
-
-
35,885
Customers collect from our mills/estates
183,927
-
-
2,772
-
-
186,699
Upon generation/others
-
-
-
-
219
4
223
219,812
7,659
-
2,772
219
4
230,466
Year to 31 December 2025
CPO and palm kernel
FFB
Rubber
Shell nut
Biogas products
Others
Total
$000
$000
$000
$000
$000
$000
$000
Contract counterparties
Government
-
-
-
495
-
495
Non-government
- Wholesalers
437,976
21,446
-
5,288
-
6
464,716
437,976
21,446
-
5,288
495
6
465,211
Timing of transfer of goods
Delivery to customer premises
-
21,446
-
-
-
-
21,446
Delivery to port of departure
83,113
-
-
-
-
-
83,113
Customers collect from our mills/estates
354,863
-
-
5,288
-
-
360,151
Upon generation/others
-
-
-
-
495
6
501
437,976
21,446
-
5,288
495
6
465,211
4. Finance income and expense
2026
2025
2025
6 months
6 months
Year
to 30 June
to 30 June
to 31 December
(unaudited)
(unaudited)
(audited)
$000
$000
$000
Finance income
Interest receivable on:
Credit bank balances and time deposits
2,657
3,141
7,997
Finance expense
Interest payable on:
Bank loans
(167)
-
-
Interest expense in lease liabilities
(23)
(25)
(44)
Net finance income recognised in income statement
2,467
3,116
7,953
5. Segment information
North
Sumatera
Bengkulu
South
Sumatera
Riau
Bangka
Kalimantan
Total Indonesia
Malaysia
UK
Hong Kong
Total
$000
$000
$000
$000
$000
$000
$000
$000
$000
$000
$000
6 months to 30 June 2026 (unaudited)
Total sales revenue (all external)
- CPO and palm kernel
77,717
71,122
15,146
31,866
-
29,959
225,810
-
-
-
225,810
- FFB
3,167
-
782
-
3,596
10,399
17,944
1,072
-
-
19,016
- Rubber
-
-
2,339
-
-
-
2,339
-
-
-
2,339
- Shell nut
866
596
-
825
-
42
2,329
-
-
-
2,329
- Biogas products
-
40
-
-
-
191
231
-
-
-
231
- Others
-
-
2
-
-
-
2
1
-
-
3
Total revenue
81,750
71,758
18,269
32,691
3,596
40,591
248,655
1,073
-
-
249,728
Profit/(loss) before tax for the period per consolidated income statement
23,893
14,755
1,070
6,346
599
15,248
61,911
(915)
(1,475)
6,313
65,834
Finance income
1,601
200
2
427
2
207
2,439
8
88
122
2,657
Finance expense
(6)
-
(168)
-
-
(1)
(175)
(8)
(7)
-
(190)
Depreciation
(3,289)
(1,863)
(3,077)
(373)
(275)
(3,249)
(12,126)
(189)
(63)
-
(12,378)
(Provision)/Reversal for expected credit loss
(2)
(1)
108
-
(1)
(3)
101
-
-
-
101
Inter-segment transactions
1,441
(1,272)
-
(347)
(218)
(145)
(541)
531
10
-
-
Inter-segmental revenue
8,662
636
2,699
-
-
406
12,403
-
-
-
12,403
Tax expense
(5,993)
(2,931)
(74)
(1,439)
(68)
(3,449)
(13,954)
(140)
(2,817)
-
(16,911)
Total assets
151,179
100,192
210,990
21,999
18,558
155,534
658,452
16,041
7,417
13,195
695,105
Property, plant and equipment
71,891
55,198
191,214
8,240
15,602
100,965
443,110
8,393
322
-
451,825
Property, plant and equipment
- additions
3,977
4,011
1,227
668
208
4,863
14,954
139
-
-
15,093
Total liabilities
(21,785)
(14,404)
(43,684)
(5,623)
(707)
(11,745)
(97,948)
(542)
(17,204)
-
(115,694)
North
Sumatera
Bengkulu
Riau
Bangka
Kalimantan
Total Indonesia
Malaysia
UK
Total
$000
$000
$000
$000
$000
$000
$000
$000
$000
6 months to 30 June 2025 (unaudited)
Total sales revenue (all external)
- CPO and palm kernel
85,026
72,411
31,663
-
30,712
219,812
-
-
219,812
- FFB
-
-
-
3,141
2,944
6,085
1,574
-
7,659
- Shell nut
1,257
764
742
-
9
2,772
-
-
2,772
- Biogas products
3
70
-
-
146
219
-
-
219
- Others
-
-
-
-
-
-
4
-
4
Total revenue
86,286
73,245
32,405
3,141
33,811
228,888
1,578
-
230,466
Profit/(loss) before tax for the period per consolidated income statement
28,014
13,286
8,860
900
11,826
62,886
58
(393)
62,551
Finance income
1,776
569
328
1
59
2,733
371
37
3,141
Finance expense
(6)
-
-
-
-
(6)
(10)
(9)
(25)
Depreciation
(3,435)
(1,774)
(357)
(296)
(3,140)
(9,002)
(163)
(61)
(9,226)
Impairment losses
-
-
-
-
-
-
-
-
-
(Provision)/Reversal for expected credit loss
(1)
(2)
-
-
(1)
(4)
-
-
(4)
Inter-segment transactions
2,927
(1,343)
(385)
(225)
(1,516)
(542)
532
10
-
Inter-segmental revenue
12,570
1,918
-
-
5,651
20,139
-
-
20,139
Tax (expense)/credit
(6,820)
(2,684)
(1,833)
(136)
(2,144)
(13,617)
(130)
(1)
(13,748)
Total assets
274,932
124,425
47,489
20,560
151,959
619,365
15,946
19,513
654,824
Property, plant and equipment
79,172
54,094
7,925
16,939
105,464
263,594
8,238
444
272,276
Property, plant and equipment -
additions
2,483
3,864
149
469
3,826
10,791
315
51
11,157
Total liabilities
(19,740)
(13,661)
(5,660)
(513)
(9,370)
(48,944)
(693)
(20,436)
(70,073)
North
Sumatera
Bengkulu
Riau
Bangka
Kalimantan
Total Indonesia
Malaysia
UK
Total
$000
$000
$000
$000
$000
$000
$000
$000
$000
Year to 31 December 2025 (audited)
Total sales revenue (all external)
- CPO and palm kernel
172,049
137,421
60,179
-
68,327
437,976
-
-
437,976
- FFB
102
-
-
6,602
11,286
17,990
3,456
-
21,446
- Shell nut
2,421
1,416
1,412
-
39
5,288
-
-
5,288
- Biogas products
3
133
-
-
359
495
-
-
495
- Others
-
-
-
-
-
-
6
-
6
Total revenue
174,575
138,970
61,591
6,602
80,011
461,749
3,462
-
465,211
Profit/(loss) before tax for the year per consolidated income statement
54,534
25,427
13,372
1,671
27,339
122,343
(1,086)
(1,927)
119,330
Finance income
5,070
1,247
926
2
249
7,494
26
477
7,997
Finance expense
(8)
-
-
-
-
(8)
(19)
(17)
(44)
Depreciation
(7,114)
(3,634)
(841)
(561)
(6,349)
(18,499)
(336)
(123)
(18,958)
Reversal of impairment/(impairment losses)
-
-
-
-
711
711
(1)
-
710
Reversal/(Provision) for expected credit loss
92
(3)
-
-
(4)
85
-
-
85
Inter-segment transactions
5,835
(2,678)
(1,000)
(448)
(3,024)
(1,315)
1,040
275
-
Inter-segmental revenue
25,292
2,439
-
-
7,355
35,086
-
-
35,086
Tax expense
(15,181)
(4,954)
(3,005)
(249)
(5,276)
(28,665)
(179)
(4,171)
(33,015)
Total assets
270,277
104,340
63,272
19,832
152,042
609,763
21,536
4,610
635,909
Property, plant and equipment
76,011
56,699
8,515
16,669
105,799
263,693
8,469
385
272,547
Property, plant and equipment - additions
6,070
10,272
1,589
1,022
10,478
29,431
404
55
29,890
Total liabilities
(18,736)
(13,459)
(5,760)
(590)
(10,812)
(49,357)
(802)
(823)
(50,982)
In the 6 months to 30 June 2026, revenue from 4 customers of the Indonesian segment represent approximately $89.9 million (H1 2025: $102.0 million) of the Group's total revenue. In the year 2025, revenue from 4 customers of the Indonesian segment represent approximately $193.1 million of the Group's total revenue. An analysis of this revenue is provided below. Although Customers 1 to 2 each contribute over 10% of the Group's total revenue, there was no over reliance on these Customers as tenders were performed on a weekly basis.
2026
2025
2025
6 months
6 months
Year
to 30 June
to 30 June
to 31 December
(unaudited)
(unaudited)
(audited)
$m
%
$m
%
$m
%
Major Customers
Customer 1
36.3
14.5
51.2
22.2
91.4
19.6
Customer 2
28.3
11.3
19.1
8.3
37.0
8.0
Customer 3
14.0
5.6
16.5
7.2
34.9
7.5
Customer 4
11.3
4.5
15.2
6.6
29.8
6.4
Total
89.9
35.9
102.0
44.3
193.1
41.5
6. Tax expense
2026
2025
2025
6 months
6 months
Year
to 30 June
to 30 June
to 31 December
(unaudited)
(unaudited)
(audited)
$000
$000
$000
Foreign corporation tax - current year
16,936
13,468
29,932
Foreign corporation tax - prior year
23
204
1,821
Deferred tax adjustment - origination and reversal of temporary differences
(48)
76
1,044
Deferred tax - prior year
-
-
218
16,911
13,748
33,015
Corporation tax rate in Indonesia is at 22% (H1 2025: 22%, 2025: 22%) whereas Malaysia is at 24% (H1 2025: 24%, 2025: 24%). The standard rate of corporation tax in the UK for the current year is 25% (H1 2025: 25%, 2025: 25%).
7. Dividend
The interim dividend in respect of 2025, amounting to 3.73 cents per share (adjusted for the 10-for-1 share split), or $14,557,914 was paid on 7 November 2025 (2024: no interim dividend).
The final dividend in respect of 2025, amounting to 4.37 cents per share (adjusted for the 10-for-1 share split), or $16,763,035 was paid on 30 July 2026 (2024: 5.10 cents per share, or $20,091,155 paid on 18 July 2025).
8. Earnings per ordinary share ("EPS")
2026
2025
2025
6 months
6 months
Year
to 30 June
to 30 June
to 31 December
(unaudited)
(unaudited)
(audited)
$000
$000
$000
Earnings used in basic and diluted EPS
48,981
48,660
90,882
Number
Number
Number
'000
'000
'000
Weighted average number of shares in issue in the period
- used in basic EPS
385,230
394,450
392,720
- dilutive effect of outstanding share options
-
-
-
- used in diluted EPS
385,230
394,450
392,720
Basic and diluted EPS
12.71cts
12.33cts
23.14cts
EPS has been retrospectively adjusted for the 10-for-1 share split completed on 25 June 2026.
9. Investments
Investments analysed as:
2026
2025
2025
as at 30 June
as at 30 June
As at 31 December
(unaudited)
(unaudited)
(audited)
$000
$000
$000
Non-current
41
9,405
45
Current
4,000
18,000
22,000
4,041
27,405
22,045
The movement of the fair value through profit and loss investment is:
2026
2025
2025
as at 30 June
as at 30 June
As at 31 December
(unaudited)
(unaudited)
(audited)
$000
$000
$000
1 January
22,045
29,087
29,087
Additions
-
30,018
29,068
Disposal
(18,000)
(31,997)
(36,003)
Change in fair value recognised in profit and loss
(4)
297
(107)
4,041
27,405
22,045
Fair value through profit and loss financial assets includes the following:
2026
2025
2025
as at 30 June
as at 30 June
As at 31 December
(unaudited)
(unaudited)
(audited)
$000
$000
$000
Quoted:
Equity securities - United Kingdom
41
35
45
Bonds - Indonesia
-
18,000
18,000
Bond - Singapore
4,000
4,000
4,000
Unquoted:
Investment portfolio - Luxembourg
-
5,370
-
4,041
27,405
22,045
Fair value through profit and loss financial assets are denominated in the following currencies:
2026
2025
2025
as at 30 June
as at 30 June
As at 31 December
(unaudited)
(unaudited)
(audited)
$000
$000
$000
Currency
Sterling
41
35
45
US Dollar
4,000
27,370
22,000
4,041
27,405
22,045
The quoted bonds have an average remaining maturity of less than one year, reflecting the
Group's short-term trading strategy. The fair value of quoted investments, including listed equity securities, bonds and treasury bills, is classified as Level 1 in the fair value hierarchy, as they are traded in active markets and valued based on quoted market prices at the reporting date.
The fair value of unquoted investment portfolio, which comprises capital-protected investments, is classified as Level 2 in the fair value hierarchy and is determined based on valuations provided by the custodian bank, using observable market inputs including quoted prices of similar instruments and market interest rates.
10. Acquisition of subsidiaries
On 4 May 2026, the Group acquired 98.26% of the issued share capital of PT Pinago Utama Tbk ("Pinago"), now known as PT AEP Pinago Plantations Tbk, an integrated palm oil and rubber plantation group in South Sumatera, Indonesia, together with its subsidiaries, for cash consideration of approximately $158.3 million. The consideration also includes the acquisition of the remaining 1% interest in PT Hamparan Mutiara Hijau ("HMH"), a subsidiary of Pinago, on the acquisition date.
The acquisition expanded the Group's plantation operations by adding approximately 15,118 hectares of planted oil palm and 3,590 hectares of planted rubber, together with integrated milling and processing capacity.
The provisional fair values of the identifiable assets acquired, and liabilities assumed at the acquisition date were as follows:
2026
(unaudited)
$000
Property, plant and equipment
198,327
Receivables
1,886
Defined benefit assets
1,727
Inventories
8,766
Tax receivables
488
Biological assets
1,382
Trade and other receivables
1,702
Cash and cash equivalents
2,837
Total identifiable assets
217,115
Trade and other payables
(5,418)
Deferred tax liabilities
(25,333)
Tax liabilities
(1,724)
Lease liabilities
(74)
Bank loans
(13,523)
Retirement benefits
(271)
Total liabilities assumed
(46,343)
Fair value of identifiable net assets acquired
170,772
The non-controlling interests were measured at their proportionate share of the fair value of the identifiable net assets of the relevant entities.
The acquisition resulted in a provisional gain on bargain purchase as follows:
2026
(unaudited)
$000
Pinago share consideration
158,321
HMH 1% consideration
21
Consideration transferred
158,342
Non-controlling interests
3,368
Less: fair value of identifiable net assets acquired
(170,772)
Gain on bargain purchase
(9,062)
Before recognising the bargain purchase gain, the Group reassessed the identification and measurement of the assets acquired, and liabilities assumed in accordance with IFRS 3. The gain represents the difference between the estimated fair value of Pinago acquisition and the purchase price.
The purchase price allocation remains provisional as at the reporting date and may be adjusted during the measurement period in accordance with IFRS 3.
From the acquisition date to the end of the reporting period, Pinago contributed revenue of $18.3 million and profit before tax of $3.5 million, before additional depreciation of $2.4 million arising from the fair value adjustments recognised on acquisition. After taking into account such additional depreciation, Pinago's contribution to the Group's profit before tax was $1.1 million.
Management is also in the process of assessing the highest and best use of certain assets acquired as part of the acquisition, which may affect their final fair values.
11. Subsequent event
Completion of Mandatory Tender Offer for Pinago
On 21 August 2026, the Group completed the mandatory tender offer ("MTO") for shares in PT AEP Pinago Plantations Tbk ("Pinago"). Under the MTO, the Group acquired an additional 9,484,700 shares, representing approximately 1.21% of Pinago's issued share capital, at Rp3,584 per share, for a total purchase consideration of approximately US$1.9 million. Following completion of the MTO, the Group's ownership interest in Pinago increased from 98.26% to approximately 99.48%. Including the initial acquisition consideration of approximately $158.3 million, the Group's total consideration for its approximately 99.48% interest in Pinago amounted to approximately $160.2 million.
Completion of Acquisition of Admiral Potential Sdn Bhd
Subsequent to the reporting date, the Group completed the acquisition of Admiral Potential Sdn Bhd, which owns PT Jaya Jadi Utama ("PT JJU"). PT JJU holds 7,169 hectares of HGU in Central Kalimantan, adjacent to the Group's KAP estate. The acquisition is expected to support FFB supply to the KAP mill and provide additional capacity for future growth.
The Group is in the process of completing the acquisition accounting, including determining the fair values of the identifiable assets acquired and liabilities assumed. Accordingly, the financial effects of the acquisition have not yet been finalised.
12. Report and financial information
Copies of the interim report for the Group for the period ended 30 June 2026 are available on the AEP website at https://aepplantations.com/.
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