Bumitama Agri's net profit declines 13.3% YoY in FY23

Revenue for the period also dropped by 2.4% YoY.

SGX-listed Bumitama Agri reported a 13.3% YoY decrease in its profit attributable to owners of the company in FY23, reaching IDR2.5t ($210.4m).

Revenue for the period likewise fell, dropping 2.4% YoY to IDR15.4t ($1.3b), mainly due to lower palm product sales prices, partly offset by an increase in sales volume.

In 1H24, the company expects a slight upward trend of palm oil prices  due to the anticipated weather impact of El Nino on the output of palm oil  and the potential tightening of palm oil supplies arising from
the lower palm production and Ramadan seasons.

Despite a decline in some key financial metrics, the company said its 2023 figures were its second highest in history.

The company's EBITDA margin reached 30% in 2023, higher than the five-year average of 29%.