INDONESIAN palm oil producer Bumitama Agri posted a 13.5 per cent increase in net profit to 1.43 trillion rupiah (S$116.9 million) for the second half ended December, from 1.26 trillion rupiah in the previous corresponding period.
This translates to earnings per share of 825 rupiah for H2 2024, up from 727 rupiah in the year-ago period.
Revenue was up 14.9 per cent on the year at 9.13 trillion rupiah from 7.95 trillion rupiah.
On Thursday (Feb 27), the group attributed the improvement in its top and bottom lines to higher average selling price of palm products, as well as the appreciation of the Indonesian rupiah against the US dollar.
Revenue from its crude palm oil (CPO) products was up 10.7 per cent at 7.99 trillion rupiah, while palm kernel (PK) product revenue grew 57.2 per cent to 1.14 trillion rupiah.
Sales volume for CPO products was down 9.9 per cent at 597,081 tonnes and down 8 per cent at 130,769 tonnes for PK products.
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In terms of average sales prices, CPO prices rose 22.8 per cent to 13,378 rupiah per kg for the half-year period, while PK prices jumped 70.8 per cent to 8,748 rupiah per kg.
In the fourth quarter, production peaked, said the group. Fresh fruit bunches (FFB) from internal sources was up 9 per cent on the year in Q4 2024 at one million tonnes. On the quarter, it was up 27 per cent. FFB yield for Q4 rose 8 per cent from the same quarter the year prior.
“As a result, production proportion in the second semester accounted for the bigger half, at 54 per cent of the year, similar with the pattern in 2023,” said Bumitama Agri.
“But unlike 2023, there was only one quarter in 2024 with FFB yield higher than the 10-year quarterly average of 4.7 tonne per hectare (ha), while there were three quarters in 2023,” it added, noting that the soft production performance was also seen by industry peers in Indonesia.
The group’s H2 earnings before interest, taxes, depreciation and amortisation (Ebitda) rose 2.3 per cent on the year to 2.63 trillion rupiah.
For the full year ended December 2024, net profit was down 6.6 per cent to 2.29 trillion rupiah, from 2.45 trillion rupiah in the previous corresponding period. This translates to an earnings per share of 1,319 rupiah for FY2024, versus 1,412 rupiah in FY2023.
Revenue edged up 8.3 per cent to 16.73 trillion rupiah, from 15.44 trillion rupiah in the same period last year. Ebitda was down 4.4 per cent on the year to 4.42 trillion rupiah.
The board has proposed to pay a final dividend for the full year – subject to approval by shareholders at the annual general meeting to be held on Apr 28.
In FY2023, Bumitama Agri’s board paid a final dividend of S$0.0363 and a special dividend of S$0.0192.
The group expects low seasonal production period, ongoing adverse weather conditions, as well as strong biodiesel demand to affect palm oil prices in H1 2025.
Additionally, the heightened seasonal demand associated with Ramadan is also projected to keep palm oil prices high in Q1 2025, said Bumitama Agri.
“The long-term fundamentals of the palm oil industry are expected to remain robust. The company will maintain its focus on business continuity, proactive replanting programme, efficiency enhancement by innovation and mechanisation, and effective cost management,” it added.
As at end-December 2024, the group planted an area of about 187,000 ha, comprising nucleus estates covering 124,000 ha and 63,000 ha of plasma estates. The average age stood at 14 years.
Shares of Bumitama Agri were trading 1.8 per cent or S$0.015 lower at S$0.815 as at 2.32 pm on Thursday.
