The recovery in palm production contributed to higher sales volume.
Bumitama Agri Ltd. profit increase 30.3% YoY to $31.12m (IDR310b) in Q3 due to improved sales volumes from the recovery in palm production and higher average selling price.
According to its financial statement, revenue also increased by 37.2% YoY to $205.96m (IDR2051b) in Q3 led by palm kernel and crude palm oil (CPO) segment production which grew 40.2% and 38.6% respectively.
Cost of sales correspondingly increased by 34.7% YoY to $144.71m (IDR1441b) due to higher production volume and higher fertilizer application.
“We foresee the recovery of palm oil production will continue into the last quarter of 2017. The expected La Nina may provide the impetus for CPO price to shift higher from current level,” Bumitama Agri said in its financial statement.
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