9 Quick Things That Investors Should Know About Bumitama Agri Ltd’s Latest Earnings

Bumitama Agri Ltd (SGX: P8Z) is a palm oil producer. Its primary business activities are the cultivation of oil palm trees, the harvesting of fresh palm fruit bunches, the processing of the bunches into crude palm oil and palm kernel oil, and the sale of the oils to refineries.

The company’s plantations are located in three provinces in Indonesia, namely, Central Kalimantan, West Kalimantan, and Riau.

In mid-November, the company released its 2017 third quarter earnings. Here are nine things investors should know about the company’s latest results:

1. Revenue for the quarter increased 37.2% year-on-year to IDR 2,051 billion.

2. EBITDA (earnings before interest, taxes, depreciation, and amortization) for the quarter jumped by 33.9% to IDR 563.8 billion compared to the same period last year.

3. Similarly, net profit attributable to shareholders for the quarter grew 29.0% year-on-year to IDR 266.3 billion.

4. Bumitama Agri’s gross margin improved from 28.4% in 2016’s third quarter to 29.7%. Yet, the EBITDA margin declined from 28.2% to 27.5%. Higher general and administrative costs led to Bumitama Agri’s lower EBITDA margin.

5. In the reporting quarter, Bumitama Agri’s operating cash flow was IDR 448 billion, a significant improvement from the IDR 80 billion seen in 2016’s third quarter. Growth here was due to better cash collection from customers.

6. Bumitama Agri’s balance sheet strengthened from a year ago. Its net debt position (total debt minus total cash) declined from IDR 4,946 billion at the end of 2016’s third quarter to IDR 4,462 billion.

7. In the third quarter of 2017, Bumitama Agri’s fresh fruit bunches (FFB) production grew 23.1% year-on-year to 925,071 tonnes.

8. There was broad-based year-on-year growth in sales volumes for Bumitama Agri in the third quarter of 2017. Crude palm oil’s (CPO’s) volume rose 39.4% to 217,367 tonnes; palm kernel’s (PK) volume jumped 58.7% to 44,183 tonnes; biodiesel’s volume stepped up by 14.4% to 10,035 tonnes; and glycerine volume increased by 47.3% to 1,712 tonnes.

9. Bumitama Agri’s total planted area at the end of 2017’s third quarter stood at 179,987 hectares, of which 50,077 hectares were considered to be plasma plantations. The weighted average age of the trees in Bumitama Agri’s plantation was 8.7 years as of 1 January 2017.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.