Earning IDR 1.53 Trillion Profit In 2021, Sawit Sumbermas Chooses Acquisition Of Plantations Or Palm Oil Companies Instead Of Opening New Land

JAKARTA - PT Sawit Sumbermas Sarana Tbk (SSMS) is one of the palm oil companies that has benefited from the increase in crude palm oil (CPO) prices last year. As a result, the company's net profit shot up 162 percent from IDR 580.53 billion to IDR 1.53 trillion.

"The positive performance achievement is inseparable from the company's efforts to continue to strengthen its strategy and improve innovation to achieve quality products, with a focus on increasing product added value, optimizing production and sales levels, and efficiency in every policy," said President Director Sawit Sumbermas. Nasarudin Bin Nasir in his statement, Monday, May 23.

In addition, in terms of its business strategy, the company will optimize existing land and prefer to acquire plantations or companies rather than open new land.

As additional information, until the end of 2021, Sawit Sumbermas' business activities are supported by nine subsidiaries, by managing integrated business activities consisting of 23 oil palm plantations, eight palm oil mills (PKS), and one biogas plant.

Nasarudin explained, as global and national economic conditions began to recover from the impact of the COVID-19 pandemic, the company not only managed to maintain a positive performance, but was able to provide more achievements. This is indicated by the volume growth in terms of sales which grew by 29.72 percent yoy to reach Rp5.20 trillion.

Throughout 2021, Sawit Sumbermas is actually only able to produce 444,720 metric tons of CPO, or down 0.77 percent compared to 2020's production of 448,185 metric tons. In fact, this figure is below the planned production target of 527,425 metric tons.

"This decline is mainly due to the company purchasing a large number of fresh fruit bunches from outside, as well as high rainfall, which affects the fertilization process for plants which disrupts productivity," Nasarudin added.

CFO Sawit Sumbermas Jap Hartono added, the increase in SSMS CPO sales rose 20.20 percent or Rp. 4.40 trillion compared to 2020 which was Rp. 3.66 trillion. Likewise, sales of palm kernel (PK) increased by 90.68 percent or Rp. 240.88 billion compared to sales of the previous year which amounted to Rp. 126.32 billion.

"What is also proud of is the increase in sales of palm kernel oil (PKO) by 90.68 percent or worth Rp. 414 billion compared to 2020 which was worth Rp. 257 billion," Hartono said.

Based on the results of the 2021 performance, the company is committed to continuing to improve the quality of the products produced as an effort to open a wider market share. Better product quality will certainly increase the company's competitiveness, especially in the highly competitive export market.