Bumitama Agri reports 9% fall in FY18 earnings to S$125 mil on forex loss and fair value changes

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SINGAPORE (Feb 26): Palm oil producer Bumitama Agri reported that its fourth quarter (4QFY18) and full year (FY18) financial performance were impacted by the weakening of the agriculture commodity prices, especially in the latest quarter.

However, the increase in sales volume was more than sufficient to offset the drop in selling prices in 4QFY18 and for FY18. Foreign exchange loss and loss on fair value changes in biological assets in FY18 also contributed to the decline in the group’s earnings by 9.0% to IDR 1.295 trillion (S$125 million).

Revenue increased by 7.0% to IDR 2,205 billion in 4QFY18 and 3.1% to IDR 8,381 billion in FY18, compared with the previous corresponding periods. 

This was mainly attributable to an increase in sales volume of Crude Palm Oil (CPO) and Palm Kernel (PK) arising from improved palm production, compared with the previous corresponding periods.

Increase in the group’s cost of sales, especially during 4QFY18, was mainly attributable to the increase in manuring cost, compared with the...(click on link for full story on theedgesingapore.com)