Bumitama

Bumitama: Strong set of results as net profit surged 65.9% to Rp380.5b on a 30.4% rise in revenue RP1,299.0b. The strong set of results was largely attributable to the increase in CPO and Palm Kernel prices by 29% and 69%, respectively. Gross margins rose to 45% vs 35%, mainly led by the increase in CPO prices. Bottomline was further aided by a 66% drop in finance costs to Rp11.8b mainly due to lower average interest rates on borrowings during the period. Going forward, the group notes that there is a gradual recovery of CPO price supported by biodiesel blending mandate of Malaysia and Indonesia and lower than expected production growth of CPO. These factors will provide an improved outlook for palm oil in 2014. The grp is rather bullish on its performance.