DSNG RECORDED IDR 6.6 TRILLION SALES IN Q3 2023
Jakarta, 31 October 2023 – PT Dharma Satya Nusantara Tbk (“The Company,” “DSNG”) booked revenue of IDR 6.6 trillion for 9M-2023, relatively the same compared to the same period last year. Palm oil continued to be the primary revenue contributor for the Company, accounting for 88%, equivalent to IDR 5.8 trillion and experiencing a 7% YoY increase against the same period last year.
This achievement was driven by a 7.5% YoY increase in CPO production, triggered by improved Fresh Fruit Bunch (FFB) productivity, particularly in the third quarter of this year. During the first nine months of 2023, the nucleus and plasma plantation recorded a significant productivity improvement against the previous quarters, with nucleus FFB production increasing by 14.5% and plasma by 16.4% QoQ.
The production of Crude Palm Oil (CPO), Palm Kernel (PK), and Crude Palm Kernel Oil (PKO) increased by 11%, 13%, and 11%, respectively. Meanwhile, the OER also improved, rising from 22.84% in Q2 2023 to 23.50% in Q3 2023, despite 0,5% lower YoY.
The CPO average selling price (ASP) also performed better in this period, accounting for Rp 11.5 million/ton. Unfortunately, an 11% rise in the cost of sales of approximately IDR 4.9 trillion also followed the revenue increase, driven by the increase in global fertilizer price and higher volume.
“The ongoing Russia-Ukraine conflict has led to fluctuations in fertilizer prices. Over the first nine months of this year, the cost of sales increased by 11% compared to last year,” explained Andrianto Oetomo, CEO, PT Dharma Satya Nusantara Tbk.
As a result, the Company’s net profit declined by 44% to Rp 504 billion, and the EBITDA reduced by 24% to Rp 1.6 trillion.
Meanwhile, the wood products segment performed otherwise, with revenue in 9M23 decreased by 33% to Rp 800 billion. The higher-for-longer interest rate environment has contributed to the slowing property markets in Japan, the USA, Canada, and the EU, and consequently, low demand for wood products throughout 2023. However, thanks to our cost leadership strategy and premium quality products, sales quantities were still growing by 18% and 6% QoQ, for panel and engineered flooring, respectively, despite being 18% and 40% lower YoY, respectively, in comparison to 2022.
DSNG also gained a 4% growth in total assets of around IDR 650 billion, contributed by higher cash balance, inventories and fixed assets from realization of capex. Meanwhile, total liabilities increased by 6% to IDR 7.6 trillion, driven by utilization of working capital loan and the foreign exchange translation on USD denominated bank loans following the weakening of IDR against USD.
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ABOUT DSNG
PT Dharma Satya Nusantara Tbk (DSN Group) was established on 29 September 1980 and focused on palm oil and wood products businesses. DSNG has 112.5 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
Mrs. Paulina Suryanti
Corporate Secretary
Jl. Rawa Gelam V Kav. OR / 3B
Pulogadung Industrial Estate
Jakarta 13930, Indonesia
Email: corporate.communications@dsngroup.co.id