DSNG Recorded Operating Profit Rp 330 Billion
JAKARTA, JULY 31, 2019 - PT Dharma Satya Nusantara Tbk was still able to post the first semester operating profit of Rp 330 billion, amid lower Crude Palm Oil (CPO) price.
The Company’s operating profit only declined by around 4% than last year of Rp 342 billion, although its average CPO selling price has dropped by 18% from Rp 7.8 million per ton in the first semester last year to Rp 6.4 million per ton in the first half this year.
The President Director of the Company, Andrianto Oetomo, explained that the significant decline in CPO price this year has hit the financial performance of many palm oil companies.
“We are still able to book operating profit and also achieve a positive comprehensive income as a result of the Company's serious efforts in managing sustainable plantations through cost efficiency and increased productivity,” Andrianto Oetomo said in a statement.
During the first semester of this year, the Company was able to generate EBITDA of Rp 576 billion, rose by 13% compared to the same period last year, with an EBITDA margin of 22%. Meanwhile, the gross profit in the first semester of 2019 was recorded at Rp 656 billion with a gross profit margin of 25%, lower than last year of 27%.
The newly acquired plantations in December 2018 are still in the revitalization program and have not yet generated the optimum contribution and consequently adversely affected gross profit margin for the current year. This revitalization program is expected to be completed and start providing optimum results next year.
“Nevertheless, during the first semester of 2019, the two newly acquired companies have contributed aroung 13% of palm oil segment’s revenue. Excluding these two companies, our gross profit margin for existing business would reach 27% which is similar to last year gross profit margin,” Andrianto said.
During the first six months of this year, the Company booked a net sales amounting to Rp 2.6 trillion, an increase of 22% compared to the same period last year, driven mainly by a significantly higher CPO sales volume.
The Company recorded CPO sales volume of 301 thousand tons in the first semester of 2019, 61% higher than the same period last year. The increase was driven by a higher CPO production following the increasing mature area and topped up with the additional contribution from the newly acquired plantation companies at the end of 2018.
The Company’s CPO production in the first semester of 2019 was recorded at 262 thousand tons, rose by 40 percent compared to the same period last year. As of June 30, 2019, the total mature area of the Company were 101,799 hectares, which consisted of the nucleus area of 81,392 hectares and the plasma area of 20,407 hectares.
From the wood product business segment, in the first half of 2019, the Company recorded sales value of Rp 474 billion, rose by 5% compared to the same period last year which driven mainly by panel product. Panel sales volume in the first six months of this year rose by 14% to 45 thousand m3 with the average price also increased by 5% to Rp 6.1 million per m3 compared to the first semester of 2018 of Rp 5.8 million per m3.
ABOUT PT DHARMA SATYA NUSANTARA Tbk
PT Dharma Satya Nusantara Tbk was established on September 29, 1980 and has engaged in the palm oil and wood products industry since. The Company currently has 108,411 hectares of planted areas of palm oil plantations and 9 palm oil mills with a total capacity of 510 tons per hour, that processes Fresh Fruit Bunches (FFB) into Crude Palm Oil (CPO). As for the wood product business segment, the Company operates a wood processing plant in Central Java, which produces panels and engineered floorings.
FOR MORE INFORMATION
PT Dharma Satya Nusantara Tbk
Jl. Rawa Gelam V Kav. OR/3B
Kawasan Industri Pulogadung
Jakarta 13930, Indonesia