SINGAPORE (May 15): Bumitama Agri reported 1Q earnings of IDR 278.4 billion ($29.3 million), 21.4% higher than the same quarter a year ago.
Revenue grew 40.7% to IDR 2.1 trillion from IDR1.5 trillion in the previous year, which was attributable to the higher sales price of palm products as well as biodiesel compared to the previous corresponding period.
Notably, revenue from the group’s crude palm oil (CPO) and palm kernel (PK) segments grew 34.6% and 78.7% to IDR 1.7 trillion and IDR 331.8 billion respectively.
In line with the higher sales volume, cost of sales grew 44.8% to IDR 1.5 billion due to higher production volume, purchase price of external fresh fruit bunches (FFB), and fertiliser.
Interest income fell 31% to IDR 36 billion due to lower interest income earned from advances given to the plasma farmers, as well as lower interest income from time deposits.
General and administrative expenses grew 18.6% to IDR 80 billion over the quarter due to increase in salaries and employee benefits, training and personnel, and professional fees expenses
The group recorded a net foreign exchange gain of IDR 11 billion in 1Q, mainly due to translation gains on its USD-denominated borrowings in its IDR financial statements, as a result of the IDR against the USD during the period.
A higher tax expense of IDR 91 billion was recorded over the quarter compared to IDR 74 billion in 1Q16, which was in line with the higher profit before income tax.
A share of loss of associate companies amounting to IDR 2 billion was registered due to losses from the group’s associate companies, PT Sawit Nabati Agro and PT Berkat Agro Sawitindo.
As at March 31, total current assets fell to IDR2.5 trillion compared to IDR 2.3 trillion previously due to the decrease in inventories on lower fertiliser stored in the warehouses, as a result of higher application during the period.
Noting a clear recovery of palm oil production over the quarter, Bumitama says it expects such a trend to continue for the rest of the year, although palm oil prices will continue to be affected by the global vegetable oil supply and demand conditions.
The group says it remains positive on the long-term outlook of the palm oil industry, and will continue to focus on yield improvement as well as cost management.
Shares of Bumitama closed 0.66% lower at 75 cents on Monday.
