Bumitama Agri has posted a 23% decline y-o-y in net profit to IDR328.38 billion ($27.8 million) due to the strengthening US dollar effect on the back of US Federal Reserve’s higher-for-longer rates.
This is in spite of higher revenue, which grew 8% y-o-y to IDR3.87 trillion driven by higher crude palm oil (CPO) sales.
Sales contribution from CPO amounted to IDR3.54 trillion in 1QFY2024, or 7% higher than the previous corresponding period.
Excluding the foreign exchange loss of 1QFY2024 versus gain in 1QFY2023, Bumitama’s core earnings increased 23% y-o-y to reach IDR373.69 billion. Ebitda also climbed 8% y-o-y to reach IDR743.21 billion as ebitda margin improved by 0.1 percentage point to 19.2%.
Bumitama processed 8% more fresh fruit bunches (FFB) y-o-y in 1QFY2024, totalling 1.14 million tonnes of FFB. While internal FFB volume increased 2% to 764 thousand tonnes, external contribution spiked 20% to 387 thousand tonnes.
The company’s CPO output grew 9% y-o-y, reaching 256 thousand tonnes in 1QFY2024. Higher oil extraction rates also contributed, rising 0.4 percentage point to reach 22.5%.
See also: Envictus reports profit turnaround with earnings of RM50.6 mil
Shares in Bumitama closed 0.5 cents lower on May 13 at 67.5 cents.
