Bumitama Agri - OCBC Investment 2024-02-28: Look Beyond Near Term Softness

Bumitama Agri - Look Beyond Near Term Softness

Published:
Bumitama Agri (SGX:P8Z) | SGinvestors.ioBumitama Agri (SGX:P8Z)
  • Bumitama Agri (SGX:P8Z)’s 4Q23 revenue/EBITDA/ net profit were sequentially weaker, down 15%/41%/ 56% q-o-q, but up 11%/45%/145% y-o-y to IDR3.6t/IDR950b/IDR387b, respectively. Both CPO and PK segments posted weaker top line performance.

Normalising performance albeit still elevated vis-à-vis pre-pandemic levels

  • - Read this at SGinvestors.io -
  • Likewise, PK revenue declined 13% q-o-q as production and sales volume slipped 7% and 16% respectively, offsetting a 3% increase in ASP to IDR5,200 per kg.
  • Bumitama Agri’s 4Q23 EBITDA margin slipped 11.5% to 26.1%. This was due to greater reliance on external fresh fruit bunch (FFB) production (4Q23: 33% of total FFB harvest; FY23: 31%), which yield lower margins, as well as a decline in volumes (while plantation costs remain fixed).

Despite sequentially weaker Q4, key FY23 figures were the second highest in the company’s history

  • - Read this at SGinvestors.io -
  • Overall FY23 revenue and PATMI beat our forecasts by 0.9% and 3%, respectively.
  • Bumitama Agri has declared a final dividend but has yet to disclose the quantum.

Company fundamentals remain in play

  • Read more at SGinvestors.io.




Above is the excerpt from report by OCBC Investment Research.
Clients of OCBC Securities may be the first to access the full report in PDF @ https://www.iocbc.com/.




Ada Lim OCBC Investment Research | https://www.iocbc.com/ 2024-02-28



Read also OCBC's most recent report:
2024-12-05 Bumitama Agri - Ending The Year On A High Note.

Previous report by OCBC:
2024-11-14 Bumitama Agri - A Longer Than Expected Winter.

Price targets by 3 other brokers at Bumitama Agri Target Prices.

Listing of research reports at Bumitama Agri Analyst Reports.

Relevant links:
Bumitama Agri Share Price History,
Bumitama Agri Announcements,
Bumitama Agri Dividends & Corporate Actions,
Bumitama Agri News Articles





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