DSNG’s Profit Rose 41% in the First Half of 2024
Jakarta, 30 July 2024 – PT Dharma Satya Nusantara Tbk (“the Company”, “DSNG”) reported a profit of IDR 508 billion for the first half of 2024, a 41% year-on-year higher compared to the same period last year. This profit growth was driven by revenue increases across all business segments, including palm oil, wood products, and renewable energy (biomass), mainly due to the rise in palm oil product prices and a reduction in operating costs following a decline in fertilizer prices, which had surged last year.
During the first half of 2024, DSNG recorded a total revenue of IDR 4.7 trillion, an 8% increase compared to last year. Of this number, the palm oil segment contributed IDR 4.0 trillion, a 5% increase compared to palm oil sales in the first half of 2023, with the average prices of CPO and PKO rising by 3.2% and 8.6%, respectively.
Andrianto Oetomo, President Director of DSNG, explained that the palm oil segment continues to be the main contributor to the Company’s revenue, accounting for approximately 86%, driven by increased productivity, particularly from the improving Oil Extraction Rate (OER).
“The Company’s palm oil operational performance was supported by an improvement in OER from 22.62% in the first half of last year to 24.05% in the first half of this year. However, since the Company limited its external FFB purchase to only those with positive processing margins, the total FFB volumes to process dropped, affecting the CPO production volume,” said Andrianto Oetomo.
Meanwhile, the wood products segment contributed around IDR 558 billion or 12% to total revenue, an increase of 11% compared to the first half of 2023, aligned with a 25% YoY increase in panel product sales volume.
However, the international markets for wood products have not yet recovered to the expected level. Our panel products experienced a price drop from last year, reflecting weak demand. Meanwhile, wood flooring prices rose slightly due to its new product mix.
“Although the current market conditions for wood products are not very encouraging, the Company continues to strive to develop the wood products business to have better performance potential in the future. The development plans are still in the pipeline before being executed, considering existing market conditions,” added Andrianto Oetomo.
Since last year, DSNG’s renewable energy segment, focusing on biomass, has begun contributing to DSNG’s revenue by selling palm kernel shells to Japan. In the first half of 2024, renewable energy contributed IDR 119 billion or about 2.5% of the Company’s total revenue, an increase of nearly 300% compared to last year.
Regarding the depreciation of the Rupiah by 7% against the USD throughout the first semester of 2024, Andrianto Oetomo explained that the weakening Rupiah has resulted in a higher balance of the Company’s USD-denominated loans when translated into Rupiah at the reporting date, as required by the prevailing accounting standards; even though the actual loan balance in its original currency has declined by 12% from December 2023 following some principal repayments. As of the end of June 2024, the Company’s USD-denominated loan accounted for around 20% of the Company’s total loans.
Moreover, Andrianto Oetomo was also confident that the Company could meet its due USD obligations. Such confidence came from the fact that the total due obligations only represented around 25% of the total USD-denominated revenue generated by the wood products and renewable energy segments for the same period. This condition has resulted in natural hedging for the Company.
Meanwhile, DSNG has also received some recognition from various parties regarding its financial performance and sustainability efforts. In May 2024, InvestorTrust.Id and Bumi Global Karbon (BGK) presented DSNG with the Green Elite and Platinum Plus awards for carbon emission disclosure and reduction efforts.
Recently, DSNG has been selected for two consecutive years to become one of the Tempo-IDNFinancial Index 52 (Indeks52) constituents for the category of High Dividend. The awarding ceremony was held on Friday, July 26, 2024, in Balikpapan.
The selected companies as constituents in the Indeks52 are public-listed companies on the Indonesia Stock Exchange with good performance, which have gone through a screening and assessment process based on the published financial reports from 2018 to June 2024.
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ABOUT PT DHARMA SATYA NUSANTARA TBK
PT Dharma Satya Nusantara Tbk (DSN Group) was established on September 29, 1980, and focused on palm oil, wood products, and renewable energy businesses. DSNG has 112.2 thousand hectares of planted area and 12 palm oil mills, which process Fresh Fruit Bunches (FFB) into CPO with a total capacity of 675 tons per hour. As for wood products, DSNG runs two wood processing plants in Central Java that produce panels and engineered floorings, with an installed capacity of 150,000 square meters per month for engineered floorings and 12,000 cubic meters per month for panel products. Meanwhile, the renewable energy business started in 2023 with sales from exporting palm kernel shells (PKS) as biomass feedstock for power plants in Japan.
FOR MORE INFORMATION
Paulina Suryanti
Corporate Secretary
PT Dharma Satya Nusantara Tbk
GRHA DSN
Jl. Pulo Ayang Kav OR.3, Kawasan Industri Pulogadung
Kelurahan Jatinegara, Kecamatan Cakung, Jakarta Timur 13930
Email: corporate.communications@dsngroup.co.id