SINGAPORE (Nov 14): Bumitama Agri saw its earnings grow 29% to IDR 266.3 billion ($26.4 million) in the 3Q ended September, from IDR 206.4 billion a year ago.
This was mainly attributable to higher sales volume from the recovery in palm production and higher average selling price.
Revenue grew 37.2% to IDR 2.05 trillion during the quarter, from IDR 1.49 trillion a year ago, as a result of improved palm oil and palm kernel production as well as higher average selling price.
General and administrative expenses surged 74.1% to IDR 59.5 billion, mainly due to increase in land and building taxes as well as salaries and employee benefits, training, and professional fees.
As at end September, cash and cash equivalents stood at IDR 272.3 billion.
“We foresee the recovery of palm oil production will continue into the last quarter of 2017. The expected La Nina may provide the impetus for CPO (crude palm oil) price to shift higher from current level,” Bumitama Agri says in a filing to SGX on Tuesday.
Supported by growing demand in domestic and emerging markets, the group says it remains positive on the long-term outlook of the palm oil industry and will continue to focus on yield improvement and cost management.
Shares of Bumitama Agri closed 2 cents higher at 82.5 cents on Monday.
