Bumitama's net profit up 21.4% to $29.2m

Palm products bolstered up yields.

Bumitama Agri reported a rise in net profit for the past quarter, up 21.4% to $29.3m (IDR 278.4b).

This came as headline rose 40.7% to $220.7m (IDR2.1t). According to the group, the growth in both headline and bottom line was mainly due to the higher sales price of palm products as well as biodiesel compared to the previous corresponding period.

The group reported a 44.8% increase in the cost of sales to $157m (IDR1.5t). The increase was mainly attributable to higher production volume, purchase price of external FFB, and fertiliser.

Here's more from the group:

Interest Income

Interest income decreased by 31.0% to IDR 36 billion in 1Q2017 mainly due to lower interest income earned from advances given to the plasma farmers and lower interest income from time deposits.

General and administrative expense

General and administrative expense increased by 18.6% to IDR 80 billion in 1Q2017 mainly due to increase in salaries & employee benefits, training & personnel and professional fees expenses.

Foreign Exchange Gain

The Group recorded a net foreign exchange gain of IDR 11 billion in 1Q2017 which was mainly due to translation gains on the USD denominated borrowings in the Group’s IDR financial statements as a result of the appreciation of IDR against USD during the period.

Other expenses

Other expenses amounting to IDR 9 billion in 1Q2017 mainly consist of witholding tax expense on interest received by the Company from its subsidiaries.

Other income

Other income amounting to IDR 7 billion in 1Q2017 mainly consist of premium from sales of certified Palm Kernel as well as income from insurance claim received during the period.

Income tax expense

The Group recorded an increase in income tax expense to IDR 91 billion in 1Q2017 compared to IDR 74 billion in 1Q2016 which was in line with the higher profit before income tax.