Bumitama Agri Ltd. 1H25 Financial Results: Strong Growth Amid Industry Resilience
Bumitama Agri Ltd. delivered a robust performance in the first half of 2025, demonstrating resilience despite ongoing global economic and geopolitical headwinds. The company capitalized on elevated palm oil prices and improved operational productivity, resulting in record-high revenues and profits. Below, we analyze the key financial metrics, performance trends, and strategic factors shaping the company’s outlook.
Key Financial Metrics & Performance Summary
| Metric |
2Q25 |
1Q25 |
2Q24 |
YoY Change (2Q25 vs 2Q24) |
QoQ Change (2Q25 vs 1Q25) |
| Revenue (IDR bn) |
5,149 |
4,594 |
3,726 |
+38% |
+12% |
| Net Profit (IDR bn) |
771 |
496 |
528 |
+46% |
+55% |
| Gross Profit (IDR bn) |
1,494 |
1,079 |
977 |
+53% |
+38% |
| EBITDA (IDR bn) |
1,538 |
1,011 |
1,049 |
+47% |
+52% |
| EBITDA Margin (%) |
29.9 |
22.0 |
28.1 |
+1.8pp |
+7.9pp |
| OER (Oil Extraction Rate, %) |
22.5 |
22.3 |
22.0 |
+0.5pp |
+0.2pp |
| Metric (1H) |
1H25 |
1H24 |
YoY Change |
| Revenue (IDR bn) |
9,743 |
7,600 |
+28% |
| Net Profit (IDR bn) |
1,267 |
857 |
+48% |
| Gross Profit (IDR bn) |
2,573 |
1,799 |
+43% |
| EBITDA (IDR bn) |
2,549 |
1,792 |
+42% |
| EBITDA Margin (%) |
26.2 |
23.6 |
+2.6pp |
| OER (%) |
22.4 |
22.2 |
+0.2pp |
Operational Highlights
- FFB Processed: Up 17% YoY in 2Q25. Internal production grew by 12% and external FFB by 29%.
- CPO Sales: ASP rose to IDR 14.5k/kg in 1H25 (+22% YoY). Sales volume up 5% YoY in 1H25.
- PK Segment: PK to CPO price ratio surged to 90% in 2Q25 vs. a 3-year average of 57%, driven by lauric oil supply constraints.
- OER and KER: OER marginally improved to 22.4% (+0.2pp YoY), indicating higher operational efficiency.
- Processing Capacity: 6.99 million tons per annum across 17 mills.
- Planted Area: 186k hectares (123k nucleus, 63k plasma), with an average age of 14.7 years.
Historical Performance & Financial Health
- Revenue and Profit Growth: 5-year CAGR for revenue, EBITDA, and net profit at 16%, 18%, and 23% respectively, highlighting sustained growth.
- Balance Sheet Strength: Net gearing ratio continued to improve, reaching a low of 0.1x in 2Q25, reflecting prudent deleveraging and strong cash flows.
- Productivity: CPO yield and FFB yield showed consistent improvement, supported by disciplined agronomic practices and favorable weather in operational regions.
Industry and Macroeconomic Context
- Global Palm Oil Prices: Remained elevated in 2Q25 amid geopolitical uncertainties, trade barriers, and military aggression in several continents.
- Market Share: Palm oil regained share from other edible oils, with palm oil trading at a USD 155/ton discount to soybean oil in 2Q25 (vs. USD 20 premium in 1Q25 and USD 115 premium in 4Q24).
- Production Cycle: The second half of the year is expected to deliver higher production, keeping the outlook robust.
Exceptional Items, Risks, and Notable Absences
- No mention of asset revaluation, exceptional earnings/expenses, or major legal disputes.
- No disclosure of dividends, share buybacks, or capital market activities such as IPOs or fundraising in the reporting period.
Chairman’s Statement
There is no direct Chairman’s Statement included in the report. However, the tone of the executive summary is positive, emphasizing strong operational results, market share gains, and resilience in a challenging global environment.
Outlook and Forecasted Events
- Production Outlook: Management anticipates higher production in the second half of 2025, supported by favorable crop cycles and operational efficiency.
- Price Environment: While the geopolitical environment remains volatile, palm oil’s fundamentals and market share recovery are expected to underpin continued strong performance.
Conclusion and Investment Recommendations
Overall Assessment: Bumitama Agri Ltd. has posted a strong first half in 2025, with double-digit revenue and profit growth, margin expansion, and continued operational improvements. The company benefits from a robust balance sheet, improving productivity, and a favorable market environment for palm oil.
-
If you currently hold Bumitama stock: Consider maintaining your position. The company’s financial and operational momentum, coupled with a positive industry outlook, supports a continued hold. Monitor for any changes in global palm oil pricing or major geopolitical disruptions.
-
If you are not currently invested: Bumitama presents an attractive entry opportunity for investors seeking exposure to the palm oil sector. The company’s track record of growth, strong margins, and prudent financial management make it a compelling candidate for portfolio inclusion, especially if palm oil prices remain resilient.
Disclaimer: This analysis is based solely on information provided in Bumitama’s 1H25 financial report and does not constitute investment advice. Investors should perform their own due diligence and consider their risk tolerance and investment objectives before making any decisions.
View Bumitama Agri Historical chart here
