Bumitama Agri (P8Z) H2 2023 earnings summary

Executive summary

• FY23 production increased modestly: total FFB processed rose 1% YoY to 5.385 million tons, while CPO output grew 3% to 1.222 million tons.

• Financial results eased from 2022 levels, but EBITDA margin remained above its five-year average; palm oil prices remained elevated after retreating from the 2022 peak.

Financial highlights

• Revenue fell 2% YoY to IDR15,443 billion, primarily reflecting the high commodity-price base in 2022.

• Gross profit declined 13% YoY to IDR2,449 billion; EBITDA fell 19% to IDR4,627 billion.

• CPO sales revenue rose 2% to IDR14,102 billion, while PK sales revenue fell 34% to IDR1,341 billion.

Segment performance

• Internal FFB output in H2 accounted for 54% of FY23 output, versus 49% in FY22; total FFB processed, including external sources, reached 5.385 million tons.

• CPO output reached 1.222 million tons, up 3% YoY, with FY23 oil extraction rate averaging 22.7%.

• CPO sales volume increased 13% YoY, more than offsetting a 10% decline in average selling price.

• PK average selling price fell 36% YoY; sales volume increased 2% to 252 thousand tons.

• 4Q23 internal FFB output declined QoQ across operating regions; Riau fell 2%, while Western Kalimantan fell 14%. YoY, Western Kalimantan rose 19% and Riau declined 9%.