On back of weak CPO, kernel palm selling prices.
Weak selling prices and mounting expenses have led to Bumitama Agri’s FY15 attributable profit plunging 22.8% YoY to around IDR890.70m or around $93.1m.
According to the agribusiness company’s announcement, the earnings crash is on back of a multitude of reasons, the first of which is the tapered selling prices for crude palm oil and palm kernel.
The company further asserts that earnings were impacted by climbing sales costs; selling, general and administrative expenses; finance costs; loss from fair value changes in biological assets; and share of loss of associate companies.
To this end, Bumitama Agri notes that it has rolled out it costs containment programme in a bid to boost financial results during the year. It states that it will focus on initiatives of productivity enhancement, operational efficiency and effectiveness, and capacity building.
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