First Half of 2022, DSNG’s Profit Rose by 119%

JAKARTA, 28 JULY 2022 – PT Dharma Satya Nusantara Tbk (“the Company,” “DSNG”) recorded a profit in the first half of 2022 of Rp 467 billion, an increase of 119% compared to last year, driven by the rise in both CPO’s and PKO’s average selling price as well as increasing profit of the wood product segment.

During the first six months of this year, DSNG posted revenue of Rp 3.8 trillion, 15% higher than last year’s. The palm oil segment contributed Rp 3.0 trillion or around 80 percent of total revenue. Its revenue rose by 11 percent despite a 24% decrease in CPO sales volume against the same period last year, as production volume has not yet recovered, particularly in the first quarter of 2022.

The President Director of DSNG, Andrianto Oetomo, said that the higher CPO’s average selling price was due to the limited supply of global vegetable oil due to the war between Russia and Ukraine, which has driven the Company’s improved performance. As a result, the ASP of CPO in the first semester rose by 40% to Rp 11.8 million per ton, while the PKO’s ASP rose by 68% to Rp 25.6 million per ton.

“DSNG benefited a flag fall from the increase in CPO prices, where the palm oil segment contributed around 80% of DSNG’s total revenue. In addition, the wood products segment continues to generate better profitability and consequently strengthen the Company’s performance in 2022,” he said in the Company statement explaining DSNG’s business performance in the second quarter of 2022.

Meanwhile, Fresh Fruit Bunches (FFB) production in the second quarter of this year has indicated a strong signal of the upward trend, as the 24-month lagging impact of El-Nino in East Kalimantan ceased in the first quarter of 2022. As a result, we have seen the FFB production in Q2-2022 higher by 22% than in the previous quarter. Moreover, FFB production in June 2022 exceeded the June 2021 production achievement.

In the first semester of 2022, DSNG achieved an EBITDA of Rp 1.2 trillion, 47% higher compared to the same period last year, with an EBITDA margin of 31%, compared to 25% in the first semester of last year.

In addition, our wood product business segment continued to generate positive performance with increased sales volume and average sales price. The improving economy in the United States, Canada, and Japan as the main export markets for DSNG wood products has positively influenced our sales.

The wood product segment recorded revenue of Rp 782 billion in 1H2022, an increase o 33% compared to last year. The primary contributors to this increase are the 22% YoY increase in sales volume of engineered floorings, combined with the 25% higher average selling price of panel products following improving demand from Japan market.

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 112.8 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