DSNG Posted Net Sales Of Rp 2.25 Trillion In First Half 2015
JAKARTA, 31 JULY 2015 - PT Dharma Satya Nusantara Tbk (DSNG) today published the Consolidated Financial Statements for the period ended June 30, 2015. In the first six months of this year, the Company recorded net sales of Rp 2.25 trillion, a decline of 12.4% from the Rp 2.56 trillion booked in the same period last year. Of total net sales, the palm oil segment accounted for Rp 1.51 trillion, for a decrease of 17.1% from the same period last year.
The decline in palm oil revenue is largely due to a weakening of the CPO price in the first semester. The Company’s average selling price of CPO from January to June 2015 was Rp 7.5 million per ton, or 14.4% below the average selling price of Rp 8.8 million per ton from the same period 2014. At the same time, the Company's CPO production was reduced by 4.9% due to a reduction in the volume of third-party FFB processed.
Revenues for the Company’s wood products also decreased slightly, by 0.5%, to Rp 733.4 billion, due to declining volumes for panels and engineered flooring, although the average selling price of the Company's wood products have increased.
President Director of PT Dharma Satya Nusantara Tbk, Djojo Boentoro, said the decline in net sales was driven by the weakening in the price of CPO this year, in addition to a decline in palm oil production by the Company due to the lingering effects of the drought in the past year.
"But if we look at the production growth quarter on quarter, FFB volume in the second quarter of this year increased significantly by 25.6% compared to the first quarter. We expect an increase both CPO production and CPO price in the second half to support the financial performance of the Company. "
In the first half of this year, the Company recorded gross profit of Rp 617.73 billion, a decline of 27.0% compared to the same period last year. The gross profit margin decreased from 33.0% in the first half of 2014 to 27.5% this year. Meanwhile, operating profit of the Company amounted to Rp 379.24 billion, or 33.3% lower compared to the same period last year, with an operating profit margin of 16.9% this year.
The company's total comprehensive income for the year fell 52.8% to Rp 174.40 billion as a result of translation foreign exchange loss of Rp Rp 49.33 billion.
In the Company’s operating performance, the production of fresh fruit bunches (FFB) during the first half of 2015 reached 674.30 thousand tons, an increase of 3.0% over the first half 2014 of 654.37 thousand tons. The increase in FFB production came from both the nucleus estates, which increased by 2.6% to 615.81 thousand tons, and plasma plantations which rose by 8.4% to 58.50 thousand tons. The Company's CPO production, however, decreased by 4.9% to 180.07 thousand tons as the result of an 18.1% reduction in third-party FFB purchases.
Compared with the first quarter, the Company recorded significant FFB and CPO production growth in the second quarter of this year. FFB production in the second quarter of this year reached 375.35 thousand tons, up 25.6% compared to the first quarter of this year. CPO production also grew 30.1% to 101.82 thousand tons in the second quarter of this year, as the Oil Extraction Rate recovered to 23.3%.
The Company is able to maintain the CPO Oil Extraction Rate (OER) at the level of 22.83% for the first six months of this year. The quality of CPO improved as well, with the level of Free Fatty Acid (FFA) falling to 2.61% from 2.76% in the first half of last year. In the second quarter, average FFA levels declined further, to 2.46%
As of June 2015, the Company’s total planted area reached 85,376 hectares, comprising a nucleus area of 66,421 hectares and plasma of 18,955 hectares.
ABOUT PT DHARMA SATYA NUSANTARA Tbk
PT Dharma Satya Nusantara Tbk is a company engaged in the palm oil industry and wood processing industry. The Company was established on 29 September 1980. The Company initially engaged in the timber industry. In the mid-1990s, the Company diversified its business into plantations and the palm oil industry in East Kalimantan. On June 14, 2013, the Company listed its shares on the Indonesia Stock Exchange, with ticker code DSNG.
PT Dharma Satya Nusantara Tbk
Jl. Rawa Gelam V Kav. OR / 3B, Pulogadung Industrial Estate
Jakarta 13930, Indonesia
Phone: + 62-21-4618135. Fax: + 62-21-46834865