- Bumitama Agri (SGX:P8Z)’s 1Q24 net profit came in at Rp382b (-15% q-o-q, -24% y-o-y). The lower y-o-y net profit was mainly due to the strengthening US dollar. Excluding the forex loss of 1Q24, 1Q24 core net profit would have come in at Rp374b (+23% y-o-y). Hence, we deem the results within our expectations, contributing 16% of our full-year forecast.
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Earnings were higher y-o-y in1Q24 but lower q-o-q.
- This was largely attributed to the higher CPO sales, which rose 7% y-o-y, and the commencement of its new mills, which offset the 1% decline in CPO ASP. This was due to flat CPO sale volume.
- FFB and CPO production dropped 18% and 20% q-o-q respectively as 1Q is usually the quarter with the lowest production. CPO prices were higher in 1Q24, rising 6% q-o-q due to the tighter supply and higher domestic demand in Indonesia; however, this was still not enough to offset the flat sales volume.
EBITDA margin improved significantly
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High external FFB contribution resulted in higher sales volume.
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