Bumitama Agri’s net profit down 45.4% YoY in H1

It went down to IDR 759.76b ($67.34m)  in the first half (H1) of 2023.

The net profit of SGX-listed Bumitama Agri fell 45.4% in H1 2023 to IDR 1.18t ($104m) from IDR 2.1t ($186m) reported in the same period last year. 

This was due to the weakening of palm product prices and fertiliser and fuel prices, the firm said in a financial report.

For the second quarter of 2023, its net profit declined 41.8% to IDR 759.76b ($67.34m) from IDR 1.305t ($116m) in Q2 2022.

Its revenue also declined by 16.4% in H2 2023 to IDR 7.4t ($656m) from IDR 8.9t ($788m).

In its statement, Bumitama said they are increasingly confident that the low cycle is behind them and production proportion in the second half of 2023 will be the bigger share of the year. 

“Hence, the robust performance in the 2Q23 period could serve as the transition towards a more supportive environment, after having gone through soft performance in the previous two quarters which were dominated by subdued output, falling palm oil price, and elevated cost pressure from fertilizer,” said Bumitima Agri.