BUMITAMA AGRI LTD. INVESTOR CIRCULAR
Bumitama Agri Ltd
The Story Behind the Numbers
OUTPERFORMANCE IN THE THIRD QUARTER
Singapore, 12 November 2021 - Mainboard-listed Bumitama Agri Ltd. ("Bumitama" or "The Group") is one of the leading producers of crude palm oil ("CPO") and palm kernel ("PK") with holdings of oil palm plantations in Indonesia.
The spike in quarterly profitability was primarily attributable to pent-up increase in average selling price of our CPO as the previous price-related constraint is mostly out of the way. Bumitama recorded all time high figures in EBITDA and net profit in the third quarter 2021 ("3Q21"), which amounted to IDR 1,028.7 billion and IDR 588.7 billion, respectively.
During 3Q21, Bumitama sold its CPO at an average price of IDR 10,000 per kg, or 27% higher than the same period of 2020 ("3Q20"). Sales volume between the two periods also climbed 13%. As a result, revenue from the key product spiked to IDR 2,679.8 billion in 3Q21, or 43% higher YoY.
The Group's revenue for the first nine months of 2021 ("9M21") reached IDR 8,496.8 billion, or 40% increase versus the same period of last year. The rise was primarily attributable to higher contribution from CPO as both price and volume climbed. Fertilizer application slowed down due to rainfall during the last two months of the reported quarter. Net profit recorded in 9M21 rose higher, or 70% year- on-year to reach IDR 1,072.8 billion.
The Group remains upbeat to attain this year's internal fresh fruit bunches ("FFB") growth guidance, on track for record breaking output for the year as FFB harvest from both nucleus and plasma estates reached 2.7 million tons in 9M21 period, accounting for 79% of the previous record high output of 3.3 million tons in 2018.
Several industry experts have voiced that the price at current level should sustain, as tightness in global inventory is anticipated to persist due to ongoing supply disruptions as well as post-pandemic demand recovery. Bumitama management is confident that CPO price would remain at elevated levels compared to last year's average till year end.
Could this be the start of a commodity boom cycle? Lower palm oil supplies in Malaysia and lower than expected crop production in other major vegetable oils growing regions have coincided with demand recovery as economies around the globe begin to normalize. The prices of vegetable oils have increased across the board, with palm oil and canola oil reaching all time high while soy oil hit 13-year peak in May.
Note:
Net profit stated above is attributable to owners of the company
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Registered office: 10 Anson Road | #11-19 International Plaza | Singapore 079903
Company Registration Number: 200516741R
www.bumitama-agri.com
INVESTOR CIRCULAR
Bumitama Agri Ltd
The Numbers
Production Highlight | |||||||
Unit | 3Q21 | 3Q20 | YoY | 9M21 | 9M20 | YoY | |
FFB Nucleus | ton | 578,554 | 569,521 | 1.6% | 1,834,740 | 1,558,974 | 17.7% |
FFB Plasma | ton | 255,880 | 258,471 | -1.0% | 819,108 | 722,565 | 13.4% |
FFB External | ton | 304,111 | 308,605 | -1.5% | 970,812 | 880,626 | 10.2% |
CPO Production | ton | 256,614 | 252,692 | 1.6% | 820,206 | 715,113 | 14.7% |
PK Production | ton | 55,111 | 53,750 | 2.5% | 171,689 | 150,319 | 14.2% |
FFB Yield | ton/ha | 4.6 | 4.7 | 14.6 | 13.1 | ||
OER | % | 22.6% | 22.3% | 22.7% | 22.7% |
Financial Highlight | |||||||
Unit | 3Q21 | 3Q20 | YoY | 9M21 | 9M20 | YoY | |
Revenue | IDR billion | 3,058,570 | 2,077,174 | 47.2% | 8,496,765 | 6,079,660 | 39.8% |
Gross profit | IDR billion | 1,004,254 | 500,422 | 100.7% | 2,169,088 | 1,538,800 | 41.0% |
Gross margin | % | 32.8% | 24.1% | 25.5% | 25.3% | ||
Net profit | IDR billion | 588,735 | 190,884 | 208.4% | 1,072,765 | 632,135 | 69.7% |
Net margin | % | 19.2% | 9.2% | 12.6% | 10.4% | ||
EBITDA | IDR billion | 1,028,671 | 521,179 | 97.4% | 2,219,537 | 1,599,208 | 38.8% |
EBITDA margin | % | 33.6% | 25.1% | 26.1% | 26.3% |
Note:
Net profit stated above is attributable to owners of the company
For further information, please email:
Christina Lim:clim@bumitama-agri.com
Michael Kesuma:mkesuma@bumitama-agri.com
Lim Sian Choo: lim.sian.choo@bumitama-agri.com
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Bumitama Agri Ltd. published this content on 12 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 November 2021 11:28:18 UTC.
