Profit Of Migor Bimoli Producer Owned By Conglomerate Anthony Salim Soars 101 Percent To Rp441 Billion In Semester I 2022

JAKARTA - A cooking oil producer with the Bimoli brand owned by Anthony Salim, PT Salim Ivomas Pratama Tbk (SIMP) recorded a profit for the period attributable to owners of the parent entity of Rp441 billion in the first semester of 2022.

This achievement shot 101 percent compared to the same period last year of Rp219 billion. The increase in net profit was supported by the high selling price of products and the efficiency carried out by the company.

"In the first semester of 2022, SIMP Group achieved positive financial performance and increased margins, especially in line with the increase in the average selling price of palm products as well as our efforts to control costs and efficiency. Unfavorable weather conditions have affected the production of fresh fruit bunches ( FFB) is our core. However, on a quarterly basis, we have seen a recovery in production in the second quarter of 2022 compared to the first quarter of 2022," said SIMP Group President Director Mark Wakeford in an official statement, quoted Monday 15 August.

Wakeford explained that the company's core FFB production fell 6 percent yoy to 1.28 million tons in the first semester of 2022, mainly due to unfavorable weather conditions and oil palm rejuvenation activities.

In line with that, the total CPO production fell 5 percent yoy to 327 thousand tons. In the second quarter of 2022, core FFB and CPO production rose by 17 percent and 30 percent, respectively, compared to the first quarter of 2022.

He continued, SIMP Group recorded sales of Rp8.07 trillion, down 10 percent yoy, mainly due to a decrease in sales volume of palm products and vegetable oil & fat (EOF) products which was partially offset by an increase in average selling prices.

A total of 75.65 percent of the company's sales, or around Rp. 6.1 trillion, was contributed by cooking oil and vegetable fat products. The remaining Rp593.07 billion from palm oil, Rp664.08 billion from palm kernel and related products, the remaining Rp708.55 billion from other products.

Despite the decline in sales, the company's gross profit grew 7 percent to Rp 2.20 trillion, with operating profit increasing 18 percent to Rp 1.33 trillion and EBITDA increasing 17 percent to Rp 2.13 trillion.

Profit for the period attributable to owners of the parent company also increased 101 percent yoy to Rp441 billion. With the SIMP Group's net gearing ratio on 30 June 2022 of 0.31x compared to 0.35x on 31 December 2021.

"Amid the various challenges in the agribusiness sector, we remain focused on prioritizing capital expenditure, particularly on oil palm rejuvenation and infrastructure activities, improving cost control and efficiency, increasing productivity and focusing on sustainable good agricultural practices," said Wakeford.