Bumitama Agri's Q1 profit falls 36.4% on increased CPO levy and export tax

BUMITAMA Agri posted 36.4 per cent lower earnings of 166.73 billion rupiah (S$15.6 million) for the first quarter ended March, compared to earnings of 262.07 billion rupiah in Q1 FY2020.

In a business update on Tuesday morning, the Indonesian palm oil producer said the lower profit was mainly due to a higher crude palm oil (CPO) levy and export tax.

Revenue grew 14.4 per cent on-year to 2.31 trillion rupiah from 2.02 trillion rupiah previously. This was supported by improved production as fresh fruit bunches (FFB) volumes and yield both grew year on year by 24.8 per cent and 19.5 per cent, respectively, which the group attributed mainly to conducive weather in 2020 and an optimal fertilisation programme.

Cost of sales for the quarter grew 21.8 per cent on the back of the higher production volume and higher average purchase price of FFB arising from an increase in CPO price, resulting in the group's lower gross profit compared to the previous corresponding period.

As at end-March 2021, the group's gearing ratio stood at 0.54.

All of the group's estates and mills have remained in full operation since the start of the Covid-19 pandemic, said Bumitama Agri, adding that it will continue with business continuity plans to mitigate impact on its business operations.

Bumitama Agri shares ended Monday flat at 47.5 Singapore cents.