This Is The Cause Of Wilmar, Sania, And Fortune Cooking Oil Producers Lost Its Profits 20 Percent Despite Reaching Rp1.1 Trillion In Revenue

Illustration. (Irfan Meidianto/VOI)

JAKARTA - Vegetable oil processing company, PT Wilmar Cahaya Indonesia Tbk posted an unsatisfactory performance in the first quarter of 2021. This was due to an increase in sales, but not accompanied by growth in profit for the year, the issuer codenamed CEKA shares.

Quoted from Wilmar's financial report published on the Indonesian Stock Exchange (IDX) disclosure page, Wednesday, June 2, the company owned by the conglomerate Martua Sitorus posted net sales of Rp1.10 trillion until the end of March 2021. the first quarter of 2020 worth Rp915.78 billion.

CEKA's revenue in the first three months of 2021 includes domestic sales of Rp1.05 trillion and export sales of Rp50.51 billion. Both recorded growth of 20.55 percent and 24.40 percent in the first quarter of 2021.

However, the increase in net sales contributed to Wilmar's cost of goods sold ballooning in the first quarter of this year. It was noted that the company's cost of goods sold increased by 25.37 percent from Rp810.71 billion in the first quarter of 2020 to Rp1.01 trillion in the same period this year.

As a result, Wilmar's gross profit decreased by 15.15 percent to Rp89.14 billion in the first quarter of 2021. Even though in the same period last year, Wilmar still pocketed a gross profit of up to Rp105.06 billion.

Wilmar also could not avoid increasing expenditure on a number of expense items. For example, the selling expenses recorded rose 20.43 percent to Rp22.62 billion at the end of last March.

Even so, general and administrative expenses recorded a decline of 10.38 percent from the original Rp11.82 billion in the first quarter of 2020 to Rp10.59 billion in the same period this year.

Thus, the producers of Sania and Fortune's cooking oil were only able to make a profit for the current period of Rp49.06 billion. The score shrank by 26.05 percent compared to profit for the first quarter of 2020 of IDR66.35 billion.

Wilmar is engaged in the production of edible and specialty oils used in the food industry and general trade, including exports and imports.

Martua Sitorus, the owner, is the 12th richest person in Indonesia according to Forbes as of December 2020. His wealth reaches US$ 2 billion or around Rp29 trillion.