3Q results
October 31st, 2019
⏰ 1 minute read
⏰ 1 minute read
Cash flow
Cash flow in the third quarter improved slightly with better production & prices starting to have an impact. Operating cash flow was minus Rp405bn compared to minus Rp420bn in the 2nd quarter. Working capital was a high Rp171bn as we paid down payables, so if we add back working capital, the improvement was bigger, with operating cash flow minus Rp234bn. Investment spending was just Rp2bn.
Balance sheet
The payables dropped from Rp1.1tn to Rp959bn in the 3rd quarter & have now declined significantly from Rp1.4tn at the end of last year. We are coming back to a more normal range of Rp750bn to Rp900bn or about 1.5 to 1.7 month spending. Net debt continued to rise as the cash flow was negative & is now Rp9.3tn from Rp8.9tn in the 2nd quarter. Most of this came from reduced cash.
Profit
Cash receipt from customers increased significantly, as production & pricing increased, from Rp398bn in 2nd quarter to Rp563bn in the 3rd quarter. In the P&L sales were lower at Rp530bn due to timing of recording. Excluding biological asserts adjustment, operating profit was minus Rp117bn which was almost the same as 2Q’s minus Rp116bn. Net loss was bigger minuses of Rp294bn vs 2Q Rp243bn as interest was higher.
Estimator
Nucleus spending increased from Rp409bn in the 1st quarter & Rp358bn in the 2nd to Rp471bn in the 3rd. Four quarter average is now Rp452bn. We adjust our profit estimator like this: Outside fruit adds 15% to the nucleus so Rp531bn plus depreciation & interest in the 3rd quarter were Rp160bn & Rp215bn (cash flow) making total costs Rp906bn, up from Rp868bn previously. Here’s what the estimate looks like now.
For the full results click here
Data file is here
Sebastian
Cash flow in the third quarter improved slightly with better production & prices starting to have an impact. Operating cash flow was minus Rp405bn compared to minus Rp420bn in the 2nd quarter. Working capital was a high Rp171bn as we paid down payables, so if we add back working capital, the improvement was bigger, with operating cash flow minus Rp234bn. Investment spending was just Rp2bn.
Balance sheet
The payables dropped from Rp1.1tn to Rp959bn in the 3rd quarter & have now declined significantly from Rp1.4tn at the end of last year. We are coming back to a more normal range of Rp750bn to Rp900bn or about 1.5 to 1.7 month spending. Net debt continued to rise as the cash flow was negative & is now Rp9.3tn from Rp8.9tn in the 2nd quarter. Most of this came from reduced cash.
Profit
Cash receipt from customers increased significantly, as production & pricing increased, from Rp398bn in 2nd quarter to Rp563bn in the 3rd quarter. In the P&L sales were lower at Rp530bn due to timing of recording. Excluding biological asserts adjustment, operating profit was minus Rp117bn which was almost the same as 2Q’s minus Rp116bn. Net loss was bigger minuses of Rp294bn vs 2Q Rp243bn as interest was higher.
Estimator
Nucleus spending increased from Rp409bn in the 1st quarter & Rp358bn in the 2nd to Rp471bn in the 3rd. Four quarter average is now Rp452bn. We adjust our profit estimator like this: Outside fruit adds 15% to the nucleus so Rp531bn plus depreciation & interest in the 3rd quarter were Rp160bn & Rp215bn (cash flow) making total costs Rp906bn, up from Rp868bn previously. Here’s what the estimate looks like now.
For the full results click here
Data file is here
Sebastian