Bimoli Oil Producer Owned By The Conglomerate Anthony Salim, Receives A Blessing From WFH, Profit Raising IDR 234 Billion

Conglomerate Anthony Salim. (Photo: Instagram @forbesindonesia)

JAKARTA - The producer of cooking oil with the Bimoli brand, PT Salim Ivomas Tbk, has received blessings from the COVID-19 pandemic situation. They managed to reverse the situation from a loss in 2019 to a profit in 2020.

The performance of the company owned by conglomerate Anthony Salim in 2020 was successfully supported by restrictions on the movement of the community. This makes people spend a lot of time at home to break the chain of spreading the COVID-19 virus.

President Director Salim Ivomas Pratama Mark Wakeford said last year was a challenging year for the agribusiness industry in line with the impact of the pandemic worldwide, volatility in commodity prices, and weather conditions.

"Despite the challenges of the pandemic, the EOF [Eadible, Oil, and Fat] Division, recorded a very good performance with cooking oil and margarine consumer products posting positive growth as families cooking and dining at home increased during the pandemic", Wakeford said from the disclosure of information on the Indonesia Stock Exchange (IDX) website, Saturday 6 March.

The company, which is listed on the IDX with the SIMP ticker code, managed to book revenue from contracts with customers of IDR 14.74 trillion in 2020. This achievement was 6 percent higher than the previous year's achievement of IDR 13.65 trillion.

Wakeford specified that the revenue from the plantation sector was IDR 8.45 trillion, the vegetable oil and fat sector was IDR 11.45 trillion, and others or elimination of IDR 5.43 trillion.

As a result, Salim Ovomas managed to generate a profit for the year attributable to the owners of the parent entity amounting to IDR 234.28 billion. This achievement is inversely proportional to the position of 2019 which lost IDR546.14 billion.

Wakeford explained that the company recorded an increase in profitability mainly due to an increase in the average selling price of palm products and efforts to control costs and efficiency. His party noted that the average selling price (ASP) of CPO and PK increased by 24 percent and 21 percent YoY, respectively.

In line with the decline in production, CPO sales volume decreased 15 percent YoY to 748,000 tons, while PK product sales volume decreased 17 percent YoY to 183,000 tons.

Also, the increase in profit for the year was supported by an increase in gross profit, a decrease in selling and distribution expenses, general and administrative expenses, and foreign exchange gain which was partially offset by a lower gain on changes in the fair value of biological assets and an increase in income tax expense.

"Amid volatility in commodity prices, our focus in 2021 is to prioritize capital spending on aspects that have growth potential, improve cost control and innovation for increased productivity", Wakeford said.

PT Salim Ivomas Pratama Tbk (SIMP) is a diversified and integrated agribusiness group with main business operations ranging from research and development, breeding and cultivation of oil palm, to milling and refining of crude palm oil, and marketing and distribution of cooking oil, margarine, shortening, and other derivative products.

SIMP Group also cultivates other crops such as rubber, sugar cane, cocoa, and tea. PT Indofood Sukses Makmur Tbk (INDF) is incorporated in Indonesia, and Indofood Agri Resources Ltd Singapore (IndoAgri) are the holding companies of the two groups. First Pacific Company Limited, Hong Kong, is the main holding company of the Group.