Yesterday, palm oil producer Bumitama Agri Ltd (SGX: P8Z) released its third quarter earnings update for the year ending 31 December 2018. Here are 10 things investors should know about Bumitama Agri’s latest results:
1. Revenue for the reporting quarter fell 6.5% year-on-year to IDR 1,919 billion.
2. Gross profit for the quarter declined 3.7% year-on-year to IDR 587 billion.
3. EBITDA (earnings before interest, taxes, depreciation and amortisation) for the reporting quarter inched down by 1.9% year-on-year to IDR 564 billion.
4. Profit attributable to shareholders, however, improved by 1.4% year-on-year to IDR 270 billion.
5. The gross margin for the reporting quarter grew from 29.7% in the corresponding period last year to 30.6% this quarter. Similarly, the EBITDA margin improved from 28.0% to 29.4% over the same period.
6. Bumitama Agri generated operating cash flow of IDR 352 billion in the quarter, down compared to IDR 448 billion in the corresponding quarter last year.
7. As of 30 September 2018, Bumitama Agri’s total borrowings stood at IDR 5,312 billion, up from IDR 4,749 billion at end-2017. Meanwhile, its cash and cash equivalents improved from IDR 217 billion to IDR 245 billion.
8. In the quarter, Bumitama’s internal fresh fruit bunches (FFB) production grew by 36.8% year-on-year to 935,692 tonnes.
9. The company’s sales volumes also grew during the reporting quarter. Volume for crude palm oil (CPO) was up 10.6% year-on-year to 240,421 tonnes while that of palm kernel grew 29.1% to 57,050 tonnes.
10. The average sales price of the company’s products fell during the quarter. The price for: (a) CPO declined 12.5% to IDR 6,807 per kg; and (b) that of palm kernel dropped 17.8% to IDR 4,943 per kg.
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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.