London Sumatra, Palm Oil Company Owned By Conglomerate Anthony Salim Its Profits Soared 267 Percent In The First Quarter Of 2021

Illustration. (Photo: Doc. Ministry of Agriculture)

JAKARTA - Palm oil producer PT PP London Sumatra Indonesia Tbk posted an encouraging performance in the first three months of 2021. The LSIP stock code company managed to record net profit growth of up to 267 percent in the first quarter of 2021.

In LSIP's financial report published on the Indonesia Stock Exchange (IDX) website, quoted on Friday, July 2, the company owned by conglomerate Anthony Salim recorded a profit for the year attributable to owners of the parent entity of Rp297 billion. This number increased compared to the acquisition in the first quarter of 2020, which was Rp. 81 billion.

The increase in profit occurred in line with the surge in the company's sales revenue. The company posted sales of IDR1.196 trillion in the first quarter of 2021, or up 48 percent compared to the same period the previous year of IDR810 billion.

In detail, the palm product segment still dominates the company's revenue with 95 percent of total sales. Furthermore, rubber products contributed to 3 percent of total sales, followed by grains and others with 1 percent each. CPO sales volume rose 27 percent year on year (yoy) to 97,000 tons.

Meanwhile, sales volume of palm kernel products (PK) rose 29 percent yoy to 26,000 tons. This increase was mainly due to an increase in sales volume and average selling price (ASP) of palm products.

"In the first quarter of 2021, ASP CPO and PK rose by 12 percent yoy and 45 percent yoy, respectively," explained the LSIP management.

As for LSIP's total assets of Rp11.44 trillion in the first quarter of 2021, including cash and cash equivalents of Rp2.40 trillion and the absence of funding through bank loans as of March 31, 2021.

During the same period, core fresh fruit bunches (FFB) production grew 4 percent yoy to 318,000 tonnes. In line with the increase in core and external FFB production, LSIP's CPO production rose 7 percent yoy to 86,000 tons.