Q1-2023, DSNG Sales Increased by 26% to Rp 2.1 Trillion

Jakarta, April 18, 2023 – PT Dharma Satya Nusantara Tbk (“DSNG,” “the Company”) continued its positive performance in the first quarter of 2023 by posting total sales of Rp 2.1 trillion, an increase of 26% compared to the same period in 2022, in line with the production rise and the higher of the Company’s CPO average selling prices.

The palm oil segment still contributed the largest share, around 88% of total consolidated sales, with palm oil sales in Q1-2023 amounting to Rp 1.8 trillion, which jumped 46% compared to the same period in 2022.

Meanwhile, DSNG’s wood product segment in Q1-2023 produced less encouraging results following the decline in demand for panel products and engineered floorings from our export destination countries, such as Japan, the United States, and Canada, due to the declining purchasing power in the property sectors.

President Director of DSNG, Andrianto Oetomo, said the increase in CPO sales volume and a rise in CPO average selling prices (ASP) still drove the improvement in DSNG’s financial performance during Q1 2023.

“In the first quarter, DSNG’s FFB production from both nucleus and plasma plantations increased significantly, with tonnage productivity per hectare returning to the level before the El Nino in the previous two years,” he said, explaining DSNG’s performance achievements in Q1 2023.

DSNG’s FFB production increased by 28% to 528 thousand tons in Q1 2023, while the CPO production in the same period also increased by 42% to 152 thousand tons. In addition, the tight supply of CPO globally and the increase in global vegetable oil prices at the beginning of 2023, following the ambiguous ending of the Russia-Ukraine war, also contributed to the surge in the Company’s CPO ASP in the first three months of this year.

DSNG’s CPO ASP in Q1 2023 rose by 13% to Rp 12.0 million per ton compared to Q1 2022 of Rp 10.6 million per ton, even higher than ASP in Q4 2022 of 11.4 million per ton.

Amid a higher sales growth in Q1 2023, the Company only booked a profit of Rp 215 billion or an increase of 3% against the same period last year. The modest growth is due to the significant increase in fertilizer costs and the more purchases of FFB from external parties, whose margin is usually lower than the margin from processing nucleus FFB.

“In addition, the higher average rainfall at the beginning of this year also adversely affected the palm oil extraction rate to be lower than last year, which consequently hampered CPO production,” Andrianto Oetomo said.

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ABOUT PT DHARMA SATYA NUSANTARA Tbk

PT Dharma Satya Nusantara Tbk was established on September 29, 1980, and operates in the palm oil and wood products industry. Currently, the company owns palm oil plantations with a planted area of 112.5 thousand hectares and 12 palm oil mills with a total capacity of 675 tons per hour, processing Fresh Fruit Bunches (FFB) into Crude Palm Oil (CPO). In the wood products business segment, the company has 2 wood processing plants in Central Java, with a production capacity of 150,000 m2 of engineered flooring and 12,000 m3 of panels.

MEDIA CONTACT

PT Dharma Satya Nusantara Tbk
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