Bumitama Agri (BAL) P8Z has reported earnings of IDR1.19 trillion ($105.3 million) for the 1HFY2023 ended June 30, 45.4% lower y-o-y.
Earnings per share (EPS) stood at IDR686 on a diluted basis.
Revenue fell by 16.4% y-o-y to IDR7.5 trillion as revenues for the group’s crude palm oil (CPO) and palm kernel (PK) segments fell. Revenue for both segments fell due to the lower average selling prices (ASPs) of both CPO and PK.
ASPs for CPO fell by 18.2% y-o-y to IDR11,720 per kg while ASPs for PK plunged by 50.5% y-o-y to IDR5,607 per kg.
Sales volume for CPO rose by 10.5% y-o-y to 587,251 metric tons (MT) while sales volume for PK fell by 8.6% y-o-y to 109,382 MT.
As a result, gross profit fell by 42.9% y-o-y to IDR2.15 trillion.
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Ebitda also fell by 45% y-o-y to IDR2.06 trillion. Ebitda margin fell by 14.7 percentage points y-o-y to 27.4%.
For the 1HFY2023, fresh fruit bunch (FFB) harvest fell by 9% y-o-y to 2.46 million tons. FFB yield fell by 13% y-o-y to 9.4 tons per hectare.
Oil extraction rate (OER) stood stable at 22.4% for the period.
“2QFY2023 was an inflection point for Bumitama as key performance metrics showed significant improvement across the board, over the previous quarter figures,” says the group, noting that revenue, net profit and ebitda for the three-month period rose by 9%, 77% and 99% respectively on a q-o-q basis.
To this end, the group says it is “increasingly confident that the low cycle is behind us and production proportion in the second half of 2023 will be the bigger share of the year”.
“Hence, the robust performance in the 2QFY2023 period could serve as the transition towards a more supportive environment, after having gone through soft performance in the previous two quarters which were dominated by subdued output, falling palm oil price, and elevated cost pressure from fertilizer,” it adds.
Cash and cash equivalents as at June 30 stood at IDR397.7 billion.
Shares in BAL closed 1 cent higher or 1.77% up at 57.5 cents on Aug 10.
