R.E.A. Holdings plc: AGM Statement

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.

Terms and definitions used in this statement are listed in the Glossary in the group’s 2025 annual report.

Agricultural operations

Key agricultural statistics for the period 1 January to 31 May 2026 (with comparative figures for 2025) were as follows:

*Based on kernels processed

Agriculture

The group's agricultural operations have continued to perform positively during the first five months of 2026 with production slightly ahead of budget. With the mature area having been reduced by the current replanting programme, FFB harvested was slightly lower than in the comparative period of 2025, but the group expects to make up the shortfall over the remaining months of 2026 as the crop contribution from replanted areas gradually increases.

Ongoing improvements to infrastructure together with reorganisation and upskilling of field management are supporting improvements to production and extraction rates in 2026.

Replanting and extension planting are proceeding in line with the targets for 2026 of, respectively, 700 and 1,400 hectares.

Prices

In 2026 to-date, the market for palm oil products has remained firm in both the international and Indonesian local markets. Uncertainties arising from an announcement in May 2026 by the Indonesian government of proposals for changes to the regulations governing exports of Indonesian CPO and certain minerals did cause a temporary hiatus but, following some clarification of the proposals, markets now appear to have stabilised.

CPO prices, CIF Rotterdam, climbed from $1,230 per tonne at the start of January 2026 to peak at $1,590 in April 2026 before falling to $1,385 following the Indonesian government announcement in May and then recovering to the current level of $1,585 per tonne.

The average price realised from sales of CPO by the group during the period January to May 2026, including premia for certified oil but net of export levy and duty, adjusted to FOB Samarinda, was $859 per tonne (average for the year 2025: $853 per tonne). The average selling price for the group’s CPKO, on the same basis, was $1,738 per tonne (average for the year 2025: $1,629 per tonne).

Sustainability and climate

The group remains committed to sustainable development and all of the group's own plantations continue to be fully certified.

Programmes to strengthen the group’s sustainability performance, climate action and supply-chain integrity by supporting responsible production, forest and biodiversity protection and smallholder engagement mean that the group remains well positioned for evolving international sustainability and traceability requirements.

Stone and sand operations

ATP is making encouraging progress. After a slightly slow start to 2026 (reflecting customer uncertainty following previously reported Indonesian government reductions to coal production quotas), production and sales of stone are now building towards meeting the contracted demand for some 1 million tonnes of crushed stone in 2026–2027. Production for the five month period to the end of May 2026 totalled some 94,000 tonnes of which some 57,000 tonnes were sold and delivered to third parties, and 15,000 tonnes was partially utilised in hardening ATP roads and partially sold to REA Kaltim for road hardening.

At MCU, the sand washing plant has now been commissioned. A trial sale of unwashed sand has recently been sold to a local customer and, if successful, should lead to a regular offtake agreement. Concurrently, samples of washed sand are being provided to several potential international customers looking to source significant volumes of silica sand of their required specification.

Finance

As recently announced, some $7.3 million nominal of dollar notes will be acquired by the group on 30 June 2026 and, for the time being, held in treasury. This will leave outstanding some $19.8 million nominal of dollar notes.

In order to finance the above repurchase of dollar notes, together with future further repurchases of the notes, the 2026 interest payments and rollover fees in respect of the notes, the company has arranged a loan of $20.0 million from REA Kaltim. The latter has funded this by way of an additional rupiah denominated term loan from Bank Mandiri of an amount currently equivalent to $19.0 million.

The Indonesian rupiah continued to weaken through the period. Starting the year at Rp 16,782 = $1, the currency has declined to a current level of Rp 18,171 = $1. If this fall is sustained, the group will be reporting exchange gains on its rupiah denominated borrowings and the group’s future debt service costs will be reduced.

On 30 June 2026, the semi-annual preference share dividend of 4.5p per share falling due on 30 June 2026 will be paid to holders on the register on 12 June 2026.

Outlook and results

Whilst regulatory, economic and geopolitical uncertainties continue, demand for vegetable oils remains strong. The continued expansion of biodiesel programmes in Indonesia should provide sustained support for domestic demand for crude palm oil and constraints on the expansion of planted acreage in producing countries should continue to limit growth in global supply.

If current reports of a major pending El Nino weather event prove accurate, then weather conditions over the rest of 2026 will not be normal. Typically, an El Nino event would result in significantly reduced rainfall in South East Asia. This would be negative for crops, but any crop shortfalls sustained by the group can reasonably be expected to be outweighed by uplifts in CPO prices as a result of reduced production throughout the region.

With recent initiatives strengthening the balance sheet, market fundamentals supporting remunerative prices for CPO and increasingly positive prospects for the stone and sand companies, the directors believe that the group is well positioned to deliver long-term value for shareholders.

In line with the timetable adopted in previous years, the half yearly results to 30 June 2026 will be published in the second half of September 2026.

Board changes

As the group transitions from a period of recovery to a period of rejuvenation and growth, the board is also transitioning to take the group forward. Luke Robinow and Grant Lutz were appointed as directors in January 2026 while Richard Robinow, John Oakley and Michael St. Clair-George will be retiring at the conclusion of today’s AGM.

We acknowledge and thank the retiring directors for their dedication, support and enthusiastic contributions throughout their terms on the board and welcome the newly appointed directors.

Enquiries: R.E.A. Holdings plc

Tel: 020 7436 7877