Bumitama Agri H2 profit falls 47.7% to 647.4 billion rupiah

BUMITAMA Agri on Wednesday (Mar 1) posted a 47.7 per cent year-on-year drop in net profit to 647.4 billion rupiah (S$57 million) for the second half year ended Dec 31, 2022.

This was mainly due to weaker crude palm oil (CPO) and palm kernel prices as a result of an export ban by the Indonesian government earlier this year, followed by an effort to flush out overflowing CPO stockpiles. There was also an increase in fertiliser and fuel prices during the period.

The results translate to earnings per share (EPS) of 371 rupiah, against an EPS of 709 rupiah previously.

Revenue, meanwhile, was up 0.7 per cent to 6.86 trillion rupiah, compared with 6.81 trillion rupiah the year before. This was mainly due to higher selling prices of palm products.

CPO revenue rose 3.2 per cent to 6.18 trillion rupiah, while palm kernel revenue fell 17.1 per cent to 681.1 billion rupiah. Sales volume for both palm products increased during the period, with CPO and palm kernel growing 11.3 per cent and 12.8 per cent respectively. 

For the full year, net profit rose 64.2 per cent to 2.83 trillion rupiah, translating to an EPS of 1,618 rupiah. Revenue was up 29.2 per cent to 15.83 trillion rupiah, from 12.25 trillion rupiah for FY2021.

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“First half was dominated by palm oil price rally and production recovery, while the second half was a period of normalising prices and low-cycle production anomaly due to intensifying extreme weather conditions,” the company said. 

Its board has recommended a final dividend for the full year, although the amount proposed has not been disclosed. The payment of the dividend will be subject to approval by shareholders at an annual general meeting to be held on Apr 20. Previously, the company paid a final dividend of S$0.033 per share.

Shares of mainboard-listed Bumitama Agri closed 4 per cent or S$0.025 higher at S$0.645 on Tuesday.