Bumitama Agri net profit drops by 27.9% in H1 2024

Their gross profit also fell by 16.5%. 

Bumitama Agri Ltd. reported a net profit attributable to the owners drop by 27.9% to IDR856.8b ($71.3m) in H1 2024 from IDR1.2t ($98.9m) in H1 2023. 

The company's net profit dropped by 29.5% from IDR1t ($83.4m) due to foreign currency losses and an increase in the average purchase price of external Fresh Fruit Bunch (FFB).

The group also reported a decrease in their gross profit by 16.5% to IDR1.8t ($149.7m).  

However, their revenue increased by 1.4% to IDR7.6t ($632.3m) due to the average selling prices of palm products, especially palm kernels (PK).

The average sales of PK grew by 10.6% to 6,201 rupiah per kg, while crude palm oil (CPO) only increased by 1.7% to 11,921 rupiah per kg.

Bumitama Agri also recorded a net foreign exchange loss IDR64.6b ($5.4m) in H1 2024, mainly due to translation loss on USD denominated borrowings resulting from the depreciation of IDR against USD during the period. 

General and administrative expenses fell by 7.6% to IDR 317b ($26.4m) in H1 2024 due to reduced pension fund payments and lower performance bonuses. 

(IDR1 = $0.000083)