Revenue increased by 7.0% to IDR 2,205 billion in 4Q18 and 3.1% to IDR 8,381 billion in FY18 compared to the previous corresponding periods. This was mainly attributable to an increase in sales volume of Crude Palm Oil (CPO) and Palm Kernel (PK) arising from improved palm production compared to previous corresponding periods.
Increase in the group’s cost of sales, especially during 4Q18, was mainly attributable to the increase in manuring cost compared to previous corresponding period due to higher fertiliser application in 4Q18.
Interest income amounting to IDR 45 billion in 4Q18 and IDR 165 billion in FY18 mainly consisted of interest income earned from advances extended to the plasma farmers.
The group also recorded decrease in fair value changes in biological assets amounted to IDR 48 billion based on market value of agricultural produce as at Dec 31 2018.
The group has declared a tax exempted (1-tier) final dividend of 2 cents cash.
In its outlook, Bumitama Agri says CPO price increased in January 2019, and is expected to maintain in the near future. This higher price will mitigate the lower seasonal fresh fruit bunches production in first quarter FY2019.
Shares in Bumitama Agri closed 1.5 cents lower at 67 cents.