InfoSAWIT, SINGAPORE — Palm oil producer Bumitama Agri Ltd recorded a sharp improvement in financial performance during the first nine months of 2025, supported by recovering production and relatively stable futures prices in the upper MYR 3,500–4,500 per ton range.
In its January–September 2025 (9M25) financial report, Bumitama posted revenue of IDR 13.61 trillion, an 18% increase year-on-year, while net profit surged 29% to IDR 1.87 trillion. The company’s EBITDA margin also strengthened to 28%.
A key driver of this growth was a rebound in production following a low-yield cycle. Internal fresh fruit bunch (FFB) harvests reached 2.54 million tons, up 8% year-on-year. In the third quarter alone, internal FFB output stood at 884,408 tons — a 2% increase from Q2.
This improvement came despite extreme rainfall in parts of Central Kalimantan in September, which briefly disrupted fruit deliveries. Even so, management expects the fourth quarter to serve as the peak harvesting season.
CPO production grew even faster, rising 18% during 9M25, supported by higher field productivity and a 33% surge in third-party FFB supply to 1.66 million tons. The strategy of optimizing mill capacity by increasing external intake has been one of the company’s core operational levers.
Yield improvements were also evident, with FFB yield rising from 13.0 to 14.4 tons per hectare and the oil extraction rate (OER) edging up from 22.1% to 22.3%.
Market Recognition and Investor Confidence
Bumitama continued to earn recognition at The Edge Singapore Billion Dollar Club Awards, securing two titles in the Consumer Defensive sector: Highest Returns to Shareholders Over Three Years and Overall Sector Winner.
Strong momentum in Singapore’s equity market has further boosted investor sentiment, supported by a robust Singapore dollar, global de-dollarization trends, and pro-investment policies. A recent DBS report projected the Straits Times Index could potentially hit 10,000 points, with the Singapore dollar expected to reach parity with the US dollar by 2040.
Outlook Remains Positive
With ongoing production recovery, improving efficiency, and supportive market sentiment, Bumitama enters the final quarter in a strong position. The peak harvest season is expected to be a key determinant of the company’s full-year performance.
However, the company remains cautious of global vegetable oil market dynamics, price volatility, and weather-related disruptions—factors that have increasingly shaped the palm oil industry’s performance in recent years. (T2)
