Bumitama Agri profits skyrocket 91% in 2Q

Thanks to higher palm oil sales.

Oil palm plantation company Bumitama Agri sees better days for palm oil and palm kernel, as profits
leapfrog on the back of higher prices for these two commodities.

In a release, Bumitama reports that it recorded an increase in net profit after tax of 90.9% to IDR 345 billion and by 94.4% to IDR 699 billion,respectively. The improved net profit was the result of higher selling price and sales volume of both Crude Palm Oil (“CPO”) and Palm Kernel (“PK”) compared to the previous corresponding period.

Revenue increased by 48.7% to IDR 1,464 billion in 2Q2014 and 51.9% to IDR 2,821 billion in 1H2014, compared to the previous corresponding period. This was attributable to an increase in selling price and overall increases in aggregate sales volume of CPO and PK.

During the last two months, prices of palm oil have adjusted lower in view of the reduced threat of El Nino, anticipated increase in output from Malaysia and Indonesia as well as the softer soybean prices. However these are just seasonal volatilities as the long term prospect of palm oil remains positive.

The Group’s drive towards ensuring sustainable palm oil, strong focus on continuous improvement, and competitive cost management will be instrumental to the continuous growth of this Group.