Bumitama Agri Ltd. Delivers Robust Nine-Month Performance in 2025: Key Highlights for Investors

Executive Summary: Outperformance in a Challenging Environment

Bumitama Agri Ltd. has posted strong results for the first nine months of 2025, demonstrating resilience and operational excellence despite adverse weather conditions. The Group’s disciplined approach to agronomy and efficiency has led to significant improvements in profitability and production metrics.

Financial Performance Highlights

• EBITDA Margin Expansion: The EBITDA margin rose by 3 percentage points year-on-year, from 24.6% to 27.6%, signaling improved profitability and operational efficiency.
• Revenue Growth: Revenue surged by 18% YoY to IDR 13.61 trillion, driven by higher average selling prices for both CPO and PK, and increased sales volumes.
• Net Profit Soars: Net profit attributable to owners jumped 29% YoY, reaching IDR 1.87 trillion, reflecting the Group’s ability to translate topline growth into bottom-line gains.
• Strong Cash Flow and Deleveraging: Healthy cash flow generation has enabled significant deleveraging, with both gross and net gearing ratios at historically low levels, supporting balance sheet strength.

Operational Performance and Productivity

• Production Recovery: Internal FFB harvest totaled 2.54 million tons, an 8% increase YoY, amid record-breaking rains in Central Kalimantan during the September book closing period. This weather event did hinder some deliveries but did not derail overall recovery.
• Productivity Improvement: FFB yield rose from 13.0 to 14.4 tons/ha and CPO yield increased from 2.9 to 3.2 tons/ha, demonstrating the effectiveness of precision agronomy and mechanization efforts.
• Third-Party FFB Proportion: The Group increased its processing of third-party FFB to utilize idle milling capacity and optimize profits, even though this segment carries lower margins.
• Peak Crop Outlook: The fourth quarter is anticipated to be the peak crop cycle, suggesting further upside potential in production and sales.

Palm Oil Market Dynamics

• Palm Oil Price Resilience: Palm oil futures remained within the MYR 3,500 – 4,500 per ton range, reflecting continued market strength over the past three years.
• Record PK Price: Palm Kernel (PK) prices spiked 75% YoY, with the PK-to-CPO price ratio at 85% (vs. 59% historical average), supporting strong revenue growth from the PK segment.
• Inventory Spike: Due to adverse weather in Central Kalimantan, there was an inventory spike in Q3 2025, potentially impacting future sales volumes as those inventories are released.

Recognition and Awards

• Bumitama Wins The Edge Singapore’s Billion Dollar Club Awards 2025: The Group was honored as the “Highest Returns to Shareholders Over Three Years” and “Overall Sector Winner” in the SGX Consumer Defensive industry, reaffirming its commitment to shareholder value and sector leadership.

Operational Footprint and Capacity

• Strategic Plantation Locations: Bumitama’s planted area stands at 184,000 hectares, with 122,000 hectares in nucleus estates and 62,000 hectares in plasma estates. The average age of palms is 14.5 years, supporting mature production levels.
• Milling Capacity: The Company operates 17 mills with a consolidated processing capacity of 6.99 million tons per annum, well-positioned to handle both internal and third-party FFB volumes.
• Geographic Spread: Operations are concentrated in Riau, West Kalimantan, and Central Kalimantan, regions favored for optimal precipitation and temperature for oil palm cultivation.

Key Considerations for Shareholders – Potential Price Sensitive Information

• Profitability Expansion: Margin improvement and net profit growth are likely to be positively received by the market and could support share price appreciation.
• Inventory Build-Up: The weather-induced inventory spike may lead to higher sales volumes in subsequent quarters, possibly boosting future revenue and profit figures.
• Peak Crop Season: Upcoming peak crop in Q4 2025 could further enhance performance, offering upside potential for future results.
• Persistent High PK Prices: Elevated PK prices and PK-to-CPO price ratios may sustain higher margins and revenue, providing continued support for earnings.
• Awards and Recognition: Recent accolades for shareholder returns and sector leadership enhance the Group’s profile and could attract greater investor interest.
• Low Gearing: The Company’s strong financial position and reduced leverage lower risk and may facilitate future growth or higher dividend payouts.

Conclusion

Bumitama Agri Ltd. has delivered a compelling performance in the first nine months of 2025, overcoming operational and external challenges to post significant growth in revenue, profitability, and shareholder returns. The positive outlook for the fourth quarter and the robust market environment for palm oil and palm kernel products position the Company for further value creation. Investors should monitor developments in inventory management, crop cycles, and market prices, as these factors are likely to influence future earnings and share price performance.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or an offer to buy or sell any security. Investors should conduct their own due diligence and consult professional advisors before making investment decisions. The information herein is based on public disclosures and may be subject to change or revision. Past performance is not indicative of future results.

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