REG-R.E.A. Holdings plc R.E.A. Holdings plc: AGM Statement

R E A HoldingsAnnouncement

Yesterday 07:00

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   R.E.A. Holdings plc (RE.)
   R.E.A. Holdings plc: AGM Statement

   19-Jun-2025 / 07:00 GMT/BST

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   R.E.A. Holdings plc (“REA” or the “company”)

    

   AGM statement

    

   The company will hold its AGM at 10 a.m. today when the chairman will give
   the following statement to shareholders.

    

   Agricultural operations

    

   Key agricultural statistics for the period 1 January to 31 May 2025 (with
   comparative figures for 2024) were as follows:

                                             2025    2024
   Fresh Fruit Bunch (FFB) crops (tonnes)                
   Continuing group (excluding CDM):                     
   Group harvested                        264,688 256,824
   Third party harvested                   89,973  80,340
   Total                                  354,661 337,164
                                                         
   CDM:                                                  
   Group harvested                          6,189  18,588
   Third party (plasma) harvested           5,446   3,152
   Total                                   11,635  21,740
                                                         
   Production (tonnes)                                   
   Total FFB processed                    359,215 342,993
   FFB sold                                 7,980  15,336
   CPO                                     79,062  76,243
   Palm kernels                            18,679  17,566
   CPKO                                     7,349   6,845
                                                         
   Extraction rates (percentage)                         
   CPO                                       22.0    22.2
   Palm kernel                                5.2     5.1
   CPKO*                                     39.8    40.8
                                                         
   Rainfall (mm):                                        
   Average across the estates               1,867   1,209

    

   *Based on kernels processed

    

   Agriculture

    

   Overall production achieved in the first five months of the year from the
   continuing group estates is slightly ahead of that of the corresponding
   period in 2024, notwithstanding that the current year crop is coming from
   a mature area that has been reduced by the continuing replanting programme
   and despite exceptionally high levels of rain during the first four months
   of the year. Rainfall to the end of May 2025 was some 54 per cent higher
   than in 2024 and 22 per cent above the 10 year historic average.

    

   Although such high rainfall created challenges for timely evacuation, the
   recent investments in road stoning meant that the group was better able to
   cope with these challenges than in the past. Nevertheless, there was some
   impact on fruit quality with consequent pressure on extraction rates.

    

   Replanting and extension planting are proceeding with the expectation that
   the 2025 targets of, respectively, 1,500 and 1,000 hectares will be
   achieved.

    

   Prices

    

   CPO prices have remained consistently above $1,000, CIF Rotterdam, in the
   first five months of 2025, trading in a range between a high of $1,365 at
   the start of the year and a low of $1,060 during May. The price currently
   stands at $1,215 per tonne.

    

   Whilst 2025 may see some increase in worldwide CPO production against the
   depressed level of 2024, supplies remain tight and are expected to remain
   so as Indonesia continues to push increased use of biodiesel in transport
   fuel. Despite geo-political uncertainties, international tariffs and a
   recent increase in the Indonesian export levy from 7.5 per cent to 10 per
   cent, there is a reasonable prospect that domestic prices for CPO and CPKO
   will be sustained at good levels for the rest of 2025.

    

   The average price realised from sales of CPO by the group during the
   period January to May 2025, including premia for certified oil but net of
   export levy and duty, adjusted to FOB Samarinda, was $869 per tonne
   (average for the year 2024: $819 per tonne). The average selling price for
   the group’s CPKO, on the same basis, was $1,565 per tonne compared with
   $1,094 per tonne in 2024.

    

   Sustainability and climate

    

   Following the sale of CDM, 100 per cent of the group’s own plantations are
   now RSPO certified. The group continues to press ahead with its
   commitments to sustainable development, forest protection, climate action,
   and empowering local livelihoods. In particular, the group is expanding
   projects with smallholders to improve the sustainable component of the
   group’s supply chain and promote sustainable palm oil production.

    

   Stone and sand operations

    

   The group continues to work on scaling up production and sales of stone in
   ATP. Deliveries to-date in 2025 have been hampered by the very high levels
   of rainfall referred to earlier but rainfall levels are now reducing. Road
   quality is being continually improved by applications of ATP stone. As
   this stone compacts, ATP can increase delivery volumes by increasing the
   number of trucks undertaking deliveries and moving to larger trucks. Stone
   deliveries in the five months to end May totalled 40,000 tonnes but the
   group still expects to be delivering approaching 100,000 tonnes of stone
   per month by the end of the year. ATP now has confirmed contracts with
   three substantial purchasers for in excess of 1 million tonnes over the
   next 18 months.

    

   Following installation of the sand washing plant, MCU’s first customer is
   conducting sample testing in preparation for an initial trial shipment of
   approximately 50,000 tonnes of silica sand. Provided that this trial is
   successful, MCU expects progressively to scale up production to 100,000
   tonnes per month.

    

   The group now has direct management control of both ATP and MCU and is
   currently progressing formalisation of its economic ownership of 95 per
   cent of each company.

    

   Finance

    

   Steps to improve the group’s liquidity and strengthen the balance sheet
   are continuing.

    

   As recently announced, the group has completed the sale of its subsidiary
   company, CDM. The final loss on disposal is estimated to be some $9
   million, in line with the proforma figures published in the announcement
   on 22 April 2025 of the conditional sale of CDM.

    

   Additionally, as previously announced, loan funding provided by Bank
   Mandiri to the Indonesian operating companies has been repackaged and
   increased on a basis that improves the maturity profile of the group’s
   debt.

    

   On 31 August 2025, the outstanding balance of the sterling notes of £21.4
   million nominal will fall due for redemption and be redeemed. Then, the
   group intends to invite holders of the $27 million nominal of the dollar
   notes to roll over their notes to 31 December 2028, having already
   obtained the agreement of the largest holder of the notes to support the
   proposals and roll over its holding of $17.6 million nominal of the notes
   on the terms that will be proposed. Finally, in 2025, the group aims to
   eliminate all remaining prepaid sales advances from customers which
   amounted at the end of 2024 to $8.0 million.

    

   On 30 June 2025, the semi-annual preference share dividend of 4.5p per
   share falling due on 30 June 2025 will be paid to holders on the register
   on 13 June 2025.

    

   Outlook and results

    

   With liquidity improved, a stable outlook for CPO and CPKO prices, and
   operational performance benefitting from the substantial investments in
   infrastructure and factories in recent years, the group expects that its
   financial position will continue to strengthen. Financing costs should
   further reduce as net debt falls and the plantation operations should
   generate cash flows at good levels. Stone is expected to start providing a
   valuable addition to cash flow and profits and positive contributions from
   the sand mining operations are likely to follow. The prospects for the
   group are therefore encouraging.

    

   In line with the timetable adopted in previous years, the half yearly
   results to 30 June 2025 will be published in the second half of September
   2025.

    

   Terms and definitions used in this statement are listed in the Glossary in
   the group’s 2024 annual report.

    

   Enquiries: R.E.A Holdings plc

   Tel: 020 7436 7877

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   Dissemination of a Regulatory Announcement that contains inside
   information in accordance with the Market Abuse Regulation (MAR),
   transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   ISIN:          GB0002349065
   Category Code: AGM
   TIDM:          RE.
   LEI Code:      213800YXL94R94RYG150
   Sequence No.:  393200
   EQS News ID:   2157450


    
   End of Announcement EQS News Service

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