Kencana Agri reported revenue of US$121.9 million ($171 million) in FY2009, an increase of 16% from US$104.9 million in FY2008 on the back of a surge in sales volume of CPO.

The positive impact of the higher sales volume was offset by lower average selling prices of CPO and CPKO of US$600 per tonnes and US$650 per tonnes respectively in FY2009 compared to US$800 per tonnes and US$1,000 per tonnes respectively in FY2008.

As a result, gross profit decreased 24% in FY2009 to US$21.1 million from US$27.9 million in FY2008. The operating profit and net profit after tax in FY2009 (excluding fair value change in biological assets3 and one-off IPO and restructuring expenses for FY2008) decreased to US$10.9 million and US$8.5 million respectively.

Including fair value change in biological assets and one-off IPO and restructuring expenses (for FY2008), Kencana recorded a 62% increase in net profit to US$16.7 million in FY2009 from US$10.3 million in FY2008.

The US$10.9 million gain from fair value change in biological assets arose mainly due to the 34% increase in the group’s mature planted area from 12,300 ha in FY2008 to 16,500 ha in FY2009. Earnings per share for FY2009 was 1.67 US cents while net asset value per share was at 14.4 US cents as at 31 December 2009.