SINGAPORE (Feb 24): Bumitama Agri announced 4Q earnings of IDR 461.58 billion ($48.8 million), about 2.5 times of the IDR 184.67 billion a year ago on higher revenue.
This brings the Indonesian oil palm plantation company's earnings for the full year to IDR 1 trillion, up 40.8% from the IDR 713.7 reported in FY15.
In a Friday filing to the SGX, the group primarily attributes the improved performance higher revenue, higher interest income, gain from fair value changes in biological assets, and lower loss from associate companies.
Revenue for the quarter soared by 56.8% from IDR 2.3 trillion from IDR 1.5 trillion in the previous year from stronger average selling price as well as increase in sales volume, including an improved revenue from biodiesel, which contributed approximately 4.7% to total revenue.
However, cost of sales grew 44.8% in 4Q2016 to IDR 1,376 billion, mainly due to completion of fertiliser application for current year and higher purchase price of external fresh fruit bunches (FFB) of palm oil cost.
Interest income increased by 53.6% to IDR 63 billion 4Q16, largely because of interest income earned from advances given to the plasma farmers and interest income from time deposits.
The group also recorded gain arising from fair value changes in biological assets of IDR 27 billion based on market value of the agricultural produce as at Dec 31.
Share of loss of associate companies during the period declined 52.8% to IDR 6.9 billion as compared to IDR 14.6 billion a year ago, mainly due to improvement in foreign exchange translation as a result of the appreciation of IDR against USD during 4Q, combined with better production.
In its outlook, Bumitama Agri 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 Agri closed flat at 79 cents on Thursday.
