2 Companies Have Recently Announced Growth In Quarterly Result
Earnings season is over, but it’s never too late to look back at companies that have released a good set of results.
As is common with every earnings season, there will be some companies posting growth, others posting mixed numbers, and companies experiencing declines. So, which are the companies that have recently reported growth? Let’s look at two of them:
1. Bumitama Agri Ltd. (SGX: P8Z) released its latest earnings in mid-November.
As a brief introduction, Bumitama Agri is a palm oil producer. Its primary business activities are the cultivation of oil palm trees, the harvesting of fresh palm fruit bunches, the processing of the bunches into crude palm oil and palm kernel oil, and the sale of the oils to refineries.
Overall, the group had a positive quarter with better revenue and net profit. The positive performance was mainly driven mainly by improvement in fresh fruit bunches (FFB) production as a result of improvement in FFB yield.
In the latest quarter, revenue was up by 37.2% year-on-year to IDR 2051 billion while EBITDA (earnings before interest, tax, depreciation and amortization) for the quarter improved by 33.9% as compared to the same period last year. Net profit attributable to shareholder was up by 29.0% as compared to 2016.
In term of outlook, this is what the company had to say:
“We foresee the recovery of palm oil production will continue into the last quarter of 2017. The expected La Nina may provide the impetus for CPO price to shift higher from current level.
Supported by growing demand in domestic and emerging markets, the Group remains positive on the long term outlook of the palm oil industry and will continue to focus on yield improvement and cost management.”
2. SBS Transit Ltd (SGX: S61) is another company that announced positive results recently.
As a quick background, SBS Transit operates public bus and rail services in Singapore. It operates mainly in two segments: Public Transport Services (the bus and rail services) and Other Commercial Services (advertising and rental income). SBS Transit is a subsidiary of the local land transport giant ComfortDelGro Corporation Ltd (SGX: C52).
As a whole, the company delivered a strong performance, resulting in higher revenue and net profit. The improvement was due “mainly to contribution from bus services with the transition to the Bus Contracting Model (BCM) and higher ridership from rail services, offset by lower average rail fare from the fare reduction effective 30 December 2016 and lower other operating income”.
In term of numbers, revenue improved 7.4% year-on-year to $295.0 million. Furthermore, profit attributable to shareholders jumped 42.1% to $11.1 million. As at 30 September 2017, the Group had cash and bank balances of $5.2m. After accounting for the borrowings of $214.5m, the Group had a net debt position of $209.3m and a net gearing ratio of 48.1% which was lower than that of 50.7% as at 31 December.