Oil Palm Plantation Company Owned By Conglomerate TP Rachmat Reaches Sales Of IDR 7.12 Trillion And Profit Of IDR 727.15 Billion In 2021

Illustration. (Photo: Doc. Antara)

JAKARTA - The company owned by conglomerate TP Rachmat, PT Dharma Satya Nusantara Tbk (DSNG) managed to reap a net profit growth of 52.56 percent on an annual basis to IDR 727.15 billion in 2021. This was due to an increase in sales of crude palm oil (CPO) and wood products.

In the DSNG financial report quoted Thursday, February 24, the company posted a 6.7 percent year-on-year (YoY) sales increase to IDR 7.12 trillion throughout 2021 from IDR 6.65 trillion in 2020.

The company's profitability was also raised. Profit attributable to owners of the parent entity increased 52.56 percent YoY from IDR 476.63 billion in 2020.

The main factors driving the increase in profit were a significant increase in performance in the wood products business segment and an increase in the selling price of crude palm oil (CPO) despite a 15 percent decrease in volume to 545.000 tons.

Dharma Satya Nusantara President Director Andrianto Oetomo revealed that sales of the wood product segment in 2021 rose 34 percent YoY to IDR 1.3 trillion.

"The increase in sales volume and the average selling price of wood products was mainly driven by the recovery in demand from the Japanese, United States, and Canadian markets," he said in an official statement, quoted Thursday, February 24.

Meanwhile, continued Andrianto, the palm oil business segment contributed IDR 5.8 trillion in revenue in 2021, up 2 percent compared to last year.

The increase in revenue for this segment was smaller than the increase in the average selling price of 13 percent to IDR 9.2 million per tonne as it was eroded by the decline in CPO sales volume.

Currently, DSNG has oil palm plantations with 112.600 hectares of planted land and 12 palm oil mills with a total capacity of 615 tons per hour that process fresh fruit bunches (FFB) into CPO.

In the wood products business segment, the company has a wood processing factory in Central Java, which produces panels and engineered flooring.

Until the end of 2021, DSNG's total assets were recorded at IDR 13.71 trillion. The total liabilities fell 16 percent to IDR 6.7 trillion with a debt to equity ratio (DER) of 0.76 times.