In 2021, DSNG Profit Rose by 55% to Rp 740 billion

JAKARTA, 23 FEBRUARY 2022 – PT Dharma Satya Nusantara Tbk (“the Company”, “DSNG”) today released an audited Financial Statements for the year ended 31 December 2021. The Company booked the 2021 profit of Rp 740 billion, rose by 55% against last year, driven mainly by a significant improvement in the performance of the wood product business, and combined with higher CPO selling price despite a 15% drop in CPO sales volume.

President Director of DSNG, Andrianto Oetomo, pointed out the solid performance of the wood product segment in 2021, as evidenced by the increase in revenue by 34% to Rp 1.3 trillion. The business has benefited from the market recovery in Japan, USA, and Canada, resulting in higher sales volume and selling price.

“The improvement of wood product performance in 2021 ultimately increased its revenue contribution to total Revenue to 19% compared to 15% in 2020, and driving a significant jump of 2659% in the profit before tax from Rp 4.6 billion last year to Rp 126.9 billion in 2021,” Andrianto Oetomo said in the Company statement.

In 2021, the sales volume of Panel surged by 27% to 109 thousand m3, with the average selling price higher by 5% than 2020, as the demand from Japan market increased. Concurrently, the engineered flooring also reported a higher sales volume to 1,137 thousand m2 or a 15% increase with the average selling price 7% higher than 2020, following the recovered demand from USA and Canada.
Meanwhile, the palm oil segment generated the majority revenue contribution of Rp 5.8 trillion in FY 2021, a 2% increase against last year. This modest increase is way below the 13% increase in the selling price of Rp 9.2 million/ton CPO due to the offset effect from the 15% lower CPO sales volume of 545 thousand tons.

Throughout 2021 the Company produced a total FFB of 1.9 million tons, 4.7% lower than last year’s production, indicating the lagging impact of the 2019 El Nino still lingered. In addition, several floods in the Company’s plantation during the second and fourth quarters of 2021 have caused some operational disruptions in the harvesting, resulting in lower extraction rates and higher FFA levels. As a result, the Company only produced 544 thousand tons of CPO in 2021. Nonetheless, the palm oil segment generated a 21% increase in profit before tax of Rp 945 billion as against Rp 783 billion in 2020.

Consolidated-wise, DSNG booked a substantial increase in the 2021 profitability as reflected in Gross Profit, Operating Profit, Profit After Tax, and EBITDA, which grew by 16%, 40%, 55%, and 18%, respectively, compared to 2020.

“On the top of higher selling prices, the increase in our profit is also the result of our ongoing cost reduction initiatives, particularly the implementation of technology and automation into production processes, both in the wood product and palm oil segments. In addition, we continuously strive our effort to deleverage to reduce the cost of financing,” Andrianto added.

As of 31 December 2021, DSNG’s total assets declined by 3.1% to Rp 13.71 trillion, predominantly due to the declining balance of the Company’s receivables from plasma plantation following the bank refinancing. Around Rp 491 billion out of this refinancing proceeds was utilized an early loan repayment. Consequently, total liabilities declined by 16% to Rp 6.7 trillion, the majority driven by bank loan repayment totaling Rp 1.0 trillion.

Our equity as of 31 December 2021 was Rp 7.02 trillion, an increase of around Rp 795 billion, coming mainly from the profit after tax.

The improving performance above has caused the Company’s financial ratios to be healthier. The current ratio increased from 1.1x in 2020 to 1.25x in 2021. DER in 2021 was 0.76x, significantly lower from 1.03x in 2020, and the Debt to EBITDA ratio in 2021 is now 2.74x compared to 3.87x in 2020.

ABOUT PT DHARMA SATYA NUSANTARA Tbk

PT Dharma Satya Nusantara Tbk (DSN Group) was established on 29 September 1980 and engages in palm oil and wood products businesses. Currently, DSNG has 112.6 thousand hectares of planted area and 12 palm oil mills which process Fresh Fruit Bunches (FFB) into CPO with a total capacity of 615 tons per hour. As for wood products, DSNG runs two wood processing plants in Central Java that produce panels and engineered floorings.

FOR MORE INFORMATION

Paulina Suryanti
Corporate Secretary
Jl. Rawa Gelam V Kav. OR / 3B
Kawasan Industri Pulogadung (Pulogadung Industrial Estate)
Jakarta 13930, Indonesia
Email: corporate.communications@dsngroup.co.id