Bumitama Agri has reported earnings of IDR1.27 trillion ($99.8 million) for the 1HFY2025 ended June 30, 47.8% higher y-o-y.
Earnings per share (EPS) stood at IDR730, up from IDR494 previously.
“Bumitama’s robust performance in 1HFY2025 is driven by a stable trend in global palm oil price which remains elevated amid intense geopolitical environment, such as Trump’s tariff drama, series of trade barriers imposed by certain countries to protect their domestic markets, and military aggression occurring in several continents,” says the group in its investor circular released on Aug 12.
The resilience of palm oil prices is also supported by “strong fundamentals” as it regains its market share from other oil substitutes.
Palm oil discount against soybean oil has averaged US$155 ($199.39) per ton in 2Q2025, versus a US$20 premium in 1Q2025, and US$115 premium in 4Q2024, the group adds.
Revenue rose by 28.2% y-o-y to IDR9.74 trillion mainly due to the higher average selling price of palm products. Revenue for the 2QFY2025 stood at 5.15 trillion, close to the all-time high recorded in the 4QFY2024.
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Gross profit increased by 43% y-o-y to IDR2.57 trillion while gross profit margin increased to 26.4% from 23.7% previously.
Revenue contributions from crude palm oil (CPO) and palm kernel (PK) increased as average sales prices rose by 21.6% y-o-y and 92.4% y-o-y to IDR14,493 per kg and IDR11,932 per kg respectively.
In the 1HFY2025, CPO production volume rose by 17% y-o-y to 609,000 tons while sales volume dipped by 0.7% y-o-y to 574,000 tons.
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Fresh fruit bunches (FFB) yield was up by 8% y-o-y to 9.2 ton per hectare (ton/ha) while oil extraction rate (OER) inched up by 0.2% y-o-y to 22.4 ton/ha. CPO yield was up by 11% y-o-y to 2.1 ton/ha.
Production volume for PK grew by 15% y-o-y to 125,000 tons while sales volume increased by 5% y-o-y to 119,000 tons.
FFB yield for PK rose by 8% y-o-y to 9.2 ton/ha while kernel extraction rate (KER) stood steady y-o-y at 4.6 ton/ha. PK yield also remained steady at 0.4 ton/ha.
Following the group’s upgraded dividend policy announced in late February, Bumitama has declared an interim dividend of 3.63 cents per share this year, up from last year’s 1.20 cents per share. The dividend, which represents a yield of 4.4%, “at the time of writing”, will be paid on Aug 28.
As at 9.38am, shares in Bumitama Agri are trading 5 cents higher or 5.95% up at 89 cents.
