UPDATE: Bumitama Agri 4Q18 net profit dropped 43 percent, missing some analysts’ forecasts

Indonesian rupiah notesIndonesian rupiah notes

This article was originally published on Tuesday, 26 February 2019 at 7:58 A.M. SGT; it has since been updated.

Bumitama Agri reported on Tuesday its fourth quarter net profit attributable to the owners dropped 43 percent on-year to 207.37 billion rupiah (S$19.96 million or US$14.79 million). That missed some analysts’ forecasts.

While results were impacted by lower agricultural commodity prices, especially in the fourth quarter, that was more than offset by an increase in selling volume, Bumitama Agri said in the statement.

However, a foreign-exchange loss for the full year and a loss on fair value changes in biological assets weighed on net profit, it said.

It reported a loss on fair value changes in biological assets of 47.66 billion rupiah as of end-December, swinging from a year-earlier gain of 35.82 billion rupiah. It posted a foreign exchange gain of 19.33 billion rupiah in the quarter as the rupiah regained some lost ground against the dollar in the period.

Revenue for the quarter ended 31 December increased 7.0 percent on-year to 2.20 trillion rupiah, it said in a filing to SGX before the market open on Tuesday. That was mainly on increased sales volume of crude palm oil and palm kernel on better palm production, it said.

For the full-year, it reported net profit attributable to the owners fell 8.1 percent on-year to 1.10 trillion rupiah on revenue of 8.38 trillion rupiah, up 3.1 percent. That included a full-year net foreign exchange loss of 57 billion rupiah as the rupiah depreciated against the U.S. dollar, it said.

UOB KayHian had forecast fourth quarter core net profit of around 240 billion rupiah to 260 billion rupiah and full year net profit of 1.41 trillion rupiah.

RHB had forecast full-year net profit of 1.28 trillion rupiah.

In its outlook, Bumitama Agri pointed to an increase in crude palm oil prices in January, which it expected to be sustained near term.

“This higher price will mitigate the lower seasonal fresh fruit bunches production in first quarter FY2019,” it said. “The group will continue to strengthen its business strategies, improve cost management and increase the contribution from young matured plantations.”

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