Accelerated performance in the most recent quarter
2Q23 was an inflection point for Bumitama as key performance metrics showed significant improvement across the board, over the previous quarter figures
Revenue, net profit, and EBITDA in 2Q23 have progressed by 9%, 77%, and 99% respectively, versus 1Q23
Revenue from CPO and PK climbed 8% and 20% respectively, as both volume and price increased QoQ
Higher economies of scale as harvesting activities within plantation estates gathered pace amidst the mini peak cycle
Average selling price for both CPO and PK have also managed to rise slightly QoQ, amidst lower market price recorded by MDEX (Malaysia Derivative Exchange) and KPBN (PT Kharisma Pemasaran Bersama Nusantara)
EBITDA margin rebounded to 35.1% in 2Q23, from 19.1% in 1Q23, and 7.4 percentage points higher than the quarterly average in the past 5 years
Are we there yet?
The Fed decided to proceed with 25-basis points hike in the recent meeting held late July. Is it the final one in this economic tightening cycle?
June inflation in the US has plunged to 3% in annual terms, from a high of 9% in the same month last year, should we start thinking about rate cuts in the months ahead?
Price outlook for palm oil, has the downtrend ended?
While it had been a solid agreement early this year that average price in 2023 would decline from last year's record of around MYR 5,000 per ton, will the downtrend continue in 2024 or will it start to rebound?
For Bumitama, we are increasingly confident that the low cycle is behind us 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
Note:
Net profit stated above is attributable to Owners of the Company
• QoQ is comparison between 2Q23 and 1Q23 periods
2
Table of Contents
Executive Summary
Performance Highlights
Performance Trend
Appendix
3
FFB Harvest
Strong QoQ recovery in production volume and yield productivity in 2Q23
Total
tons
-9%
2,704
Thousand
2,461
-9%
30%
1,534
1,393
1,393
1,068
1Q23 2Q23
2Q22 2Q23
1H22 1H23
Internal
tons
-12%
1,961
1,721
Thousand
-12%
31%
1,109
975
975
746
1Q23 2Q23
2Q22 2Q23
1H22 1H23
FFB Yield
ha
-13%
10.8
per
9.4
Ton
-13%
29%
6.1
5.3
5.3
4.1
1Q23 2Q23
2Q22 2Q23
1H22 1H23
External
tons
-0.4%
Thousand
743
740
-2%
29%
417
426
417
322
1Q23 2Q23
2Q22 2Q23
1H22 1H23
OER
%
0.5%
0.3%
22.6%
22.6%
22.4% 22.4%
22.3%
22.1%
1Q23 2Q23
2Q22 2Q23
1H22 1H23
4
Attachments
Original Link
Original Document
Permalink
Disclaimer
Bumitama Agri Ltd. published this content on 28 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 August 2023 07:31:05 UTC.
Bumitama Agri Ltd. is an Indonesia-based fresh fruit bunch (FFB) grower and producer of crude palm oil (CPO) and palm kernels (PK). The principal activity of the Company is investment holding. The principal activities of the subsidiaries are that of investment holding, operating oil palm plantations and palm oil mills located across the Indonesian provinces of Central Kalimantan, West Kalimantan and Riau, and the production and trading of crude palm oil and related products. It is engaged in the cultivation of oil palm trees, as well as the harvesting and processing of fresh palm fruit bunches (FFB) into CPO and PK. The Company has a total of 15 mills with a total planted area of approximately 187,628 hectares. Its mills include Pundu Nabatindo Mill, Katari Agro Mill, Gunung Makmur Mill, Bukit Makmur Mill, Sungai Cempaga Mill, Selucing Mill, Kotawaringin Mill, Lamandau Mill, Tonam Raya Mill, Kendawangan Mill, Pembangunan Raya Mill, Sungai Rasau Mill and Bukit Tunggal Jaya Mill.
BUMITAMA AGRI LTD. 
