Higher cost of sales from a higher average purchase price of fresh fruit bunches (FFB) arising from the increase in CPO price also contributed to the lower gross profit. As a result, gross margins fell 4.8 percentage points to 22% compared to 26.8% in the 1QFY2020.
Bumitama Agri has reported a 36.4% y-o-y decline in earnings for the 1QFY2021 ended March to IDR166.7 billion ($15.6 million) in its quarterly update on May 11.
Despite a 14.4% increase in revenue to IDR2.4 trillion for the period, gross profit fell by 6% y-o-y to IDR507.1 million, which the group attributes to an increase in crude palm oil (CPO) levy and export tax.
