DSNG posted a 21% jump in Q1-2020 Profit
JAKARTA, 28 APRIL 2021 — PT Dharma Satya Nusantara Tbk (“the Company”, “DSNG”) has reported profit of Rp 99.3 billion in the first quarter 2021, an increase of 21% compared to the same period last year. The growth was supported by a higher CPO.
During the first quarter of 2021, DSNG recorded a revenue of Rp 1.64 trillion, 3% higher compared to the first quarter of 2020. Palm oil business segment contributed Rp 1.35 trillion or around 83% of DSNG’s total revenue. While wood product segment contributed Rp 0.29 trillion or 17%.
Compared to the same period of 2020, revenue from palm oil segment was increased by 3% contributed from high average CPO selling price up to Rp 8.7 million per ton, despite 5% decrease in sales volume to 135 thousand tons.
Production-wise, DSNG recorded a 6% decrease in CPO production volume of 144 thousand tons against 153 thousand tons last year because its operational performance in Q1-2021 was disrupted by the combined effects of the El Nino’s 12-month-lagging effect from Q1-2020 causing FFB production to drop by 4% to 485.3 thousand tons. Moreover, the excessive rainfall brought by La Nina during the past 5 months, especially in East Kalimantan, has been hampering the evacuation process of the FFB harvest from estates to palm oil mills for further processing.
Meanwhile, for the wood product segment, DSNG reported revenue amounted to Rp 284.9 billion or a 5% increase for the first quarter of 2021 compared to the same period of 2020. The growth was driven by the increase in sales volumes of both panel and engineered flooring products, combined with the higher selling prices of engineered flooring products along with demand recovery from United States.
Unfortunately, the global transportation system is currently experiencing a unique and unexpected crisis. The extraordinary cascade of events caused by the Covid-19 pandemic has led to a severe container shortage crisis. Consequently, we have incurred significantly higher shipment costs up to 50% in comparison to similar costs incurred last year. As a result, the Wood Product segment contributed a lower profitability despite higher revenue achievement.
President Director of DSNG, Andrianto Oetomo, conveyed his optimism to achieve the 2021 target following a better financial performance in the first quarter of 2021 compared to the same period of 2020. In addition, the rollout of Covid-19 vaccination program, both in Indonesia as well as many other countries, has boosted the consumer confidence for economic recovery.
Moreover, Andrianto mentioned that DSNG’s future growth would still be based on the concept of sustainability and renewable energy which have been regarded as the future concepts of the palm oil industry. In the long run he is confident these practices will bring high value to all DSNG’s stakeholders.
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 10 palm oil mills which process Fresh Fruit Bunches (FFB) into CPO with a total capacity of 570 tons per hour. As for wood products, DSNG runs two wood processing plants in Central Java that produce panels and engineered floorings.
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