Bumitama’s net profit down 19.8% to $35.23m in 4Q14

Partly due to lower selling price of Crude Palm Oil and Palm Kernel.

Bumitama was hit by a slew of higher expenses in the recent quarter, resulting in profits lower than expected.

According to a media release, during 4Q, the group recorded a decrease in net profit by 19.8% to IDR 334 billion. The decrease was due to lower selling price for both Crude Palm Oil and palm Kernel, higher cost of sales, selling expenses, general and administration expenses, other expenses due to withholding tax expenses arising from dividend received by the company from its subsidiary, and loss arising from fair value changes in biological assets.

However for the year FY14, Bumitama recorded an increase in net profit by 39.7% to IDR 1,372 billion. The improved net profit was mainly as the result of higher sales volume and selling price of both CPO and PK compared to the previous corresponding period.

Revenue increased by 20.9% to IDR 1,570 billion in 4Q2014 and 41.7% to IDR 5,757 billion in FY2014, compared to the previous corresponding period. The increase of revenue in 4Q2014 was mainly due to an increase in aggregate sales volume of CPO and PK while for FY2014, the increase in revenue was due to higher of sales volume and selling price of both CPO and PK.

Gross profit decreased by 5.0% to IDR 555 billion for 4Q2014 due to decrease in selling price for both CPO and PK by 3.4% and 6.3% respectively, and higher cost of sales by 42.0% in 4Q2014. However, in FY2014 gross profit increased by 46.4% to IDR 2,342 billion mainly due to increase in sales volume and selling price for both CPO and PK during the period.