- Bumitama Agri (SGX:P8Z)'s FY23’s results met our/consensus expectations. For FY24E, we now forecast a 14% y-o-y decline in core PATMI mainly on lower y-o-y CPO ASP and higher unit cost (on accelerated fertiliser application), mitigated by slightly better FFB output.
2H23: Sharply stronger h-o-h performance
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- Bumitama Agri's stronger y-o-y core PATMI in 2H23 was due to higher sales volume (+16% y-o-y) owing to higher FFB nucleus output (+7% y-o-y), lower unit cost of production and a marginally better CPO ASP (+0.6% y-o-y).
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FY24: Bumitama Agri targets 3%-5% y-o-y FFB growth
- Following a softening of FFB growth in FY23 (-2% y-o-y), Bumitama Agri is now targeting a +3-5% FFB growth for FY24E. Hence, we trimmed our FY24E-25E FFB (absolute) output by 3%/3% respectively, which now imply +4%/+3% y-o-y FFB nucleus growth for FY24E-25E.
- In terms of cropping pattern, Bumitama Agri expects FY24E’s 1H:2H output ratio at 43-45%:55%-57%.
- We also understand Bumitama Agri has little-to-no forward sales commitment in FY24E.
Anticipating a final dividend of S$0.0346 for FY23
- Read more at SGinvestors.io.
