DSNG Recorded Net Sales of Rp 2.64 Trillion in 3Q16
JAKARTA, 28 OCTOBER 2016 - PT Dharma Satya Nusantara Tbk (DSNG or the Company) recorded net sales of Rp 2.64 trillion in the third quarter of 2016. Net sales decreased 19.9% compared to the same period last year, as CPO production declined due to the continuing impact of the recent El Nino.
The Fresh Fruit Bunches (FFB) harvested by the Company during the first nine months of this year reached 714 thousand tons, or 32.6% lower compared to the same period last year. The decrease in FFB production in both nucleus and plasma operations, along with lower external FFB purchases, has impacted the productivity of the Company’s palm oil mills.
Total FFB processed reached 857.1 thousand tons, 30.1% lower compared to the third quarter of 2015. As a result, the Company's CPO production in the third quarter of 2016 also fell by 27.6% to 206.9 thousand tons compared to 285.9 thousand tons in the same period in 2015.
Despite the headwinds in the first nine months of 2016, the Company managed to improve the oil extraction rate to 24.14% compared to the same period last year of 23.32%.
The decline in net sales is reflected in the Company’s profitability. Gross profit decreased by 28.3% to Rp 563.6 billion, with a gross profit margin of 21.3%. Meanwhile, operating profit dropped by 48.7% to Rp 220.7 billion. In the third quarter 2016, the Company recorded comprehensive income for period of Rp 24.8 billion
The Company’s president, Andrianto Oetomo, said the decline in FFB productivity was a result of the extended El Nino in 2015 and early 2016 continuing to have an impact in the third quarter of this year.
The CPO average selling price of the Company in the first nine months of 2016 reached Rp 7.26 million per ton, in line with the price in the same period in 2015 which reached Rp 7.27 million per ton.
The palm oil segment remains the largest contributor of the Company's net sales. In the third quarter, the palm oil segment recorded net sales of Rp 1.89 trillion, 15.2% lower compared to the same period last year. Meanwhile, net sales of our wood product segment fell by 29.5% to Rp 754.8 billion compared to the same period last year.
In the wood products segment, the Company's performance during the first nine months of this year was still affected by the decline in sales of panel products, while the average selling prices for both engineered doors and engineered flooring were lower than the previous year. The sales volume of panel products fell by 49.5% to 73.4 thousand m3, although the average panel price increased by about 4.1%.
The sales volume of engineered doors and engineered flooring increased by 8.0% and 14.2% respectively. The economic slowdown in our export destinations and stiff competition from other wood producers has impacted pricing, with the average selling price of engineered doors and engineered flooring declining by 22.8% and 9.2% respectively.
ABOUT PT DHARMA SATYA NUSANTARA Tbk
PT Dharma Satya Nusantara Tbk (DSN Group) was established on September 29, 1980. DSN Group is engaged in the palm oil industry and wood products. Currently, the Company has oil palm plantations which located in East, Central and West Kalimantan. In the wood product industry, the Company has a wood-processing plant in East Java and Central Java, which manufactures wood panels, engineered doors and engineered flooring.
PT Dharma Satya Nusantara Tbk
Jl. Rawa Gelam V Kav. OR/3B
Kawasan Industri Pulogadung
Jakarta 13930, Indonesia