DSNG BOOKED RP 842 BILLION PROFIT IN 2023

Jakarta, 29 February 2024 – PT Dharma Satya Nusantara Tbk (“the Company,” “DSNG”) booked a profit of Rp 842 billion for the fiscal year 2023. This figure was supported by the Company’s sales amounting to Rp 9.5 trillion, where the palm oil business segment remained the main contributor to the Company’s revenue at 88%, or Rp 8.4 trillion, up 3% year-on-year (YoY) compared to the previous year’s Rp 8.1 trillion.

Bottom line-wise, the Company’s profit was corrected by Rp 365 billion or 30% YoY, which is lower than the previous year’s profit of Rp 1.2 trillion, following the increase in the cost of revenue due to rising fertilizer prices for the palm oil segment and a lower sales volume and average selling prices (ASP) for wood products. As a result, the Company recorded an EBITDA of Rp 2.4 trillion for the fiscal year 2023.

“In 2023, the cost of revenue increased by approximately Rp 455 billion, or a 7% increase compared to 2022, driven mainly by significantly higher fertilizer prices. As a result, the Company’s profit was corrected substantially despite an increase in sales volume and the CPO ASP by 4% and 1.9% YoY, respectively,” explained Andrianto Oetomo, President Director of DSNG.

For the wood products segment, the international market slowdown experienced since late 2022 remained the Company’s most significant challenge throughout 2023. The weak demand from our export destination countries, such as the United States, Canada, Europe, and Japan, continued throughout 2023 following a prolonged environment with higher-for-longer interest rates, adversely affecting the property market.

The wood products segment contributed 12% to the Company’s revenue, attributing to Rp 1.1 trillion. This figure represents a 29% YoY decrease from the previous year’s Rp 1.5 trillion. Sales volumes of panel and flooring products decreased by 14% and 34% YoY, respectively, although quarterly sales volumes throughout 2023 increased from quarter to quarter. Furthermore, the ASP of panel products decreased by 17.5% YoY, while the ASP of flooring products increased by 1.3% YoY.

“With the challenges faced by the wood product market last year, the Company strives to maintain positive financial performance. DSNG has the opportunity to capture the market left by industry players who temporarily halted production last year,” added Andrianto.

The positive financial performance of DSNG is also accompanied by an increase in the Company’s assets by 5% YoY, amounting to Rp 16 trillion from the previous year’s Rp 15 trillion. This increase is driven by the growth of fixed assets, such as the completion of the second phase of the Bio-CNG facility and the addition of 10 additional CPO storage tanks with a total capacity of 29 thousand tons. On the other hand, liabilities increased by 1.3% YoY, amounting to Rp 7 trillion, and equity increased by 9% YoY, attributing to Rp 9 trillion, indicating that the Company’s healthy financial position still drives asset growth.

Various domestic and international parties have appreciated DSNG’s positive performance in 2023. Some of the awards received include The Region’s Top 200 Small and Middle Companies by Forbes Asia Best Under a Billion Company, Winner of the Mid Cap Consumer Primary Sector category in the Best Stocks Award 2024, Top 50 Mid Capitalization Public Listed Company by the Indonesia Institute for Corporate Directorship (IICD), and the Disclosure Transparency Award with an A rating for the sustainability initiatives implemented by the Company.

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ABOUT PT DHARMA SATYA NUSANTARA TBK

 PT Dharma Satya Nusantara Tbk (DSN Group) was established on 29 September 1980 and focused on palm oil and wood products businesses. DSNG has 112.7 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.

FOR MORE INFORMATION

Paulina Suryanti

Corporate Secretary

PT Dharma Satya Nusantara Tbk

Jl. Rawa Gelam V Kav. OR/3B

Kawasan Industri Pulogadung

Jakarta 13930, Indonesia

Email: corporate.communications@dsngroup.co.id