Bumitama Agri suffers 36.4% profit decline over taxes
The company’s profit was affected by Indonesian government's CPO levy and export tax.
Bumitama Agri Ltd. reported its net profit attributable to owners declined 36.4% year-on-year to $15,578 (IDR166.73m) due to the crude palm oil (CPO) levy and export tax.
The Group reported a revenue increase of 14.4% to $214,766 (IDR2.30b) during the quarter; whilst its gross profit declined 6% to $47,355 (IDR507.14m).
“The Group’s financial performance for the first quarter of 2021 was supported by improvement in production,” the report read.
“However, it was affected by the increase in CPO levy and export tax, which lowered the Group’s gross profit compared to the previous corresponding period.”
Fresh palm fruit bunches (FFB) production increased by 24.8% YoY to 888,076 mt due to conducive weather in 2020 and optimal fertilisation programme; whilst FFB yields climbed 19.5% YoY to 4.9 mt/ha.
Total cost of sales went up 21.8% YoY as production volume and average purchase price increased. The Group said its financial position remains healthy with a ratio of 0.54 as of 31 March.
Bumitama noted all estate and mills are in full operation since the pandemic hit.
“The group will continue with its business continuity plans to mitigate impact on our business operations and to ensure the health and safety of our workers and their families.”