Bumitama : P8Z 0%Agri : P8Z 0% posted a 41.8 per cent drop in net profit to 759.8 billion rupiah (S$67.3 million) for the second quarter, from 1.31 trillion rupiah in the same period the year before.

The group had lower revenue and margins for the three months ended Jun 30, based on financial results released on Friday (Aug 11).

Revenue was down 23 per cent to 3.9 trillion rupiah from 5.07 trillion rupiah, while gross margin was down 10.4 percentage points on the year to 34.4 per cent from 44.8 per cent.

The latest results bring the group’s earnings for the first half of the fiscal year to 1.19 trillion rupiah, 45.4 per cent lower than the 2.18 trillion rupiah recorded in the same period the previous year.

This translated to earnings per share of 686 rupiah, down from 1,247 rupiah in the previous corresponding period.

Weakening palm product prices, together with increases in fertiliser and fuel prices, “significantly impacted” net profit for the period, the group said. 

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

Revenue for the half-year period fell 16.4 per cent on the year to 7.5 trillion rupiah from 8.97 trillion rupiah, with declines from both crude palm oil (CPO) and palm kernel (PK) products.

The average selling price of PK fell 50.5 per cent to 5,607 rupiah per kg; CPO average selling prices dropped 18.2 per cent to 11,720 rupiah per kg.

PK sales volume was down 8.6 per cent to 109,382 tonnes, while CPO sales volumes rose 10.5 per cent to 587,251 tonnes.

The rise in CPO sales led to an increase in selling expenses by 26.4 per cent to 176.3 billion rupiah, comprising freight and loading expenses.

General and administrative expenses were up 37.3 per cent to 343.4 billion rupiah on higher performance bonuses.

The group recorded a foreign exchange gain of 174.3 billion rupiah, against a loss of 125.1 billion rupiah the same period the year before. This was mainly due to translation gains from US dollar-denominated borrowings after the rupiah appreciated against the US dollar during the period.

The group’s board declared an interim dividend of S$0.0125 per share for the period, unchanged from the same period the prior year. The dividend will be paid on Sep 14, after books closure on Sep 5.

Shares of Bumitama Agri closed 2.6 per cent or S$0.015 lower at S$0.56 on Friday.