Bumitama Agri net profit inched up only 1% in FY12

But gross profit rose 14.8%

In a release, Mainboard-listed Bumitama Agri Ltd. (Bumitama), a fast-growing crude palm oil (CPO) and palm kernel (PK) producer with significant holdings of oil palm plantations in Indonesia, achieved healthy revenue growth of 25.7% to IDR 3,526 billion for the financial year ended December 31, 2012 (“FY2012”).

Although net profit increased marginally, by 1.0%, to IDR 902 billion, EBITDA for FY2012 registered a 13.6% increase to IDR 1,285 billion, compared to IDR 1,132 billion last year (FY2011), reported Bumitama.

Mr. Gunawan Lim, Bumitama’s Executive Chairman and Chief Executive Officer, said: “We are pleased to report our fourth consecutive quarter of revenue growth since our listing, boosted by overall increase in sales volumes of our CPO and PK, which rose by 34.6% and 36.9% respectively over the past twelve months. This improvement was achieved despite a decline in CPO prices since January 2012 as a result of slowing demand from Europe and China and an expanding stockpile of inventory across the industry.

“We continued to see strong production numbers, with FY2012’s CPO output reaching 462,291 MT, a 34% increase from FY2011. We also continued to maintainan efficient CPO extraction rate of 23.8%, an industry high which, again, is a testament to our disciplined approach of achieving excellence.” 

Overall revenue from CPO and PK increased by 25.7% to IDR 3,526 billion in FY2012, compared to IDR 2,805 billion in FY2011. The increase in aggregate sales volume of CPO and PK was partially offset by lower average selling prices of CPO and PK, which decreased 4.5% and 27.5% respectively over the course of the year as commodities suffered from a soft market.

Cost of sales increased by 34.3% to IDR 2,103 billion in FY2012, mainly attributable to an increase in the cost of fresh fruit bunches (“FFB”) purchased from external parties, fertilizer and labor for the maintenance and harvesting of the plantations. But as the Group’s plantations mature, the percentage contribution of internally sourced FFB is expected to increase and improved the Group’s overall margins.

In line with higher revenue, the Group’s gross profit for FY2012 increased 14.8% from IDR 1,240 billion in FY2011 to IDR 1,423 billion in FY2012. Gross margin was maintained at a healthy level of 40.4% in FY2012.

Consequently, EBITDA for FY2012 was IDR 1,285 billion, representing a 13.6% increase year-on-year. Net profit after tax for FY2012 was IDR 902 billion, an increase of 1.0% from IDR 893 billion in FY2011.