Bumitama Agri Ltd. is one of the leading producers of palm oil (PO) & palm kernel (PK), with oil palm plantation in Indonesia. Listed on the Singapore Exchange since 2012, our primary business activities are cultivating oil palm trees, as well as harvesting and processing fresh palm fruit bunches (FFB) into PO and PK, which we sell to refineries in Indonesia.(oil trading signals)
Earlier this month, Bumitama Agri Ltd (SGX: P8Z) released its 2018 first quarter (1Q FY18) earnings update.
As a quick introduction, Bumitama Agri is a palm oil producer. Its primary business activities are the cultivation of oil palm trees, harvesting of fresh palm fruit bunches, processing of the bunches into crude palm oil and palm kernel oil, and sale of the oils to refineries.
Here are 10 things investors should know about Bumitama Agri’s latest results:
1. Revenue for the reporting quarter decreased 9.1% year-on-year to IDR 1,908 billion.
2. Gross profit for the quarter declined by 4.5% year-on-year to IDR 518 billion.
3. EBITDA (earnings before interest, taxes, depreciation and amortisation) for the reporting quarter went down by 3.7% year-on-year to IDR 520 billion.
4. Profit attributable to shareholders fell by 16.8% year-on-year to IDR 232 billion.
5. The gross margin for the reporting quarter grew from 25.8% in 2017’s first quarter to 27.2%. Similarly, the EBITDA margin improved from 25.7% to 27.2% over the same period.
6. Bumitama Agri generated operating cash flow of IDR 428 billion in the quarter, down as compared to IDR 432 billion in 2017’s first quarter.
7. As of 31 March 2018, Bumitama Agri’s total borrowings stood at IDR 4,989 billion, up from IDR 4,410 billion at the end of 2017. Meanwhile, its cash and cash equivalents improved from IDR 217 billion to IDR 247 billion. These numbers show that Bumitama Agri’s balance sheet has weakened.
8. In the first quarter of 2018, the company’s fresh fruit bunches (FFB) production grew by 19.1% year-on-year to 967,061 tonnes.
9. The company’s sales volumes also grew during the reporting quarter. Volume for crude palm oil (CPO) was up 3.2% year-on-year to 205,859 tonnes while that for palm kernel was up 13.6% to 44,687 tonnes.
10. The average sales price of the company’s products fell during the quarter. The price for CPO declined 7.6% to IDR 7, 832 per kg while that for palm kernel dropped 21.5% to IDR 6,620 per kg. source
