DSNG Recorded Revenue Growth Amidst Weakening CPO Prices
Jakarta, 31 July 2023 – PT Dharma Satya Nusantara Tbk (DSNG) recorded revenue growth in the first half of 2023 despite the declining trend in Crude Palm Oil (CPO) prices. DSNG generated revenue of Rp 4.4 trillion, representing a 15% year-on-year increase. The palm oil segment remained the main contributor to the company’s revenue, accounting for 88% of the total revenue, amounting to Rp 3.9 trillion.
“During this period, our plantation productivity and sales volume grew, despite relatively lower CPO prices than last year. Fresh Fruit Bunch (FFB) production rose by 14%, while CPO sales volume increased significantly by 41% following more external FFB purchases,” explained Andrianto Oetomo, President Director, DSNG
In the first semester of this year, the company achieved a net profit of Rp 360 billion. However, this net profit declined by 23%, primarily due to the rising fertilizer costs and an increase in the purchase volume of external FFB to boost the company’s revenue.
Meanwhile, the company’s EBITDA was recorded at Rp 1.04 trillion, a 13% decrease compared to the same period the previous year, with an EBITDA margin of 24%, down from 31.4% in the first semester of the last year.
Total assets experienced a growth of 4%, reaching Rp 16 trillion, mainly contributed by additional fixed assets and increased inventory level. On the other hand, total liabilities increased by 8% to Rp 7.8 trillion, while equity increased by 0.5% to Rp 8.2 trillion.
Operational-wise, FFB production reached 1.04 million tons, a 14% increase, which is in line with the ongoing recovery of oil palm trees. With the additional purchase of FFB from external parties, Crude Palm Oil (CPO) production increased by 23% to 304,335 tons. During this period, DSNG also improved the FFA level from 3.87 to 3.07, ensuring a better quality of the DSNG’s CPO.
Meanwhile, the performance of the wood products segment was less promising after experiencing bullish market sentiment in the previous year. The sales volume of panel products was lower than the last year because the Japanese market experienced an over-inventory situation. Meanwhile, relatively high inflation still affected the USA, Canada, and the European Union markets. Consequently, the wood products segment recorded a revenue of Rp 505 billion, experiencing a YoY (Year-on-Year) decline of 36%. Nevertheless, in the second quarter, this segment showed an improvement in sales volume compared to the first quarter, with panel products increasing by 7.8% and engineered flooring by 13.9% QoQ (Quarter-on-Quarter).
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ABOUT DSNG
PT Dharma Satya Nusantara Tbk (DSN Group) was established on 29 September 1980 and engages in 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