- 1Q25 results was off to a decent start despite seasonally low output and high manuring costs. We expect Bumitama Agri.'s earnings to catch up in 2H25 on higher output and lower unit cost (especially in Q4).
Better ASPs propelled y-o-y earnings in 1Q25
- - Read this at SGinvestors.io -
- The better y-o-y results were due to higher revenue underpinned by stronger CPO ASP (+26% y-o-y, +5% q-o-q) and PK ASP achieved (+94% y-o-y, +16% q-o-q) which offset lower sales volume. Had it not been for an inventory build-up in 1Q25, revenue and profits would have been better.
- - Read this at SGinvestors.io -
FY25E: targets up to 5% y-o-y internal FFB growth
- In terms of production, 1Q25 FFB nucleus of 508,048t (+2% y-o-y, -24% q-o-q) met 22% of our full-year forecast; well within historical ranges. Bumitama Agri maintains its up to 5% y-o-y FFB growth target for FY25E.
- In terms of cropping pattern, Bumitama Agri expects its monthly output to peak in Sept/ Oct 2025.
- We also understand Bumitama Agri has made little-to-no forward sales commitment for the rest of FY25E.
Higher export levy = lower net CPO ASP
- Read more at SGinvestors.io.
