Spike In Crude Palm Oil Prices Becomes A Blessing For Bimoli Producer Owned By Conglomerate Anthony Salim Who Raised Revenue Of IDR 19.66 Trillion In 2021

Illustration. (Photo: Doc. Antara)

JAKARTA - The producer of Bimoli cooking oil belonging to conglomerate Anthony Salim, PT Salim Ivomas Pratama Tbk (SIMP) has benefited from the surge in crude palm oil prices. The company managed to record net profit and revenue growth throughout 2021.

Salim Ivomas was able to pocket a 320.19 percent increase in net profit on an annual basis to Rp984.41 billion in 2021. This was driven by SIMP's revenue of Rp19.66 trillion, an increase of 35.81 percent from Rp14.47 trillion in 2020.

President Director of Salim Ivomas Pratama, Mark Wakeford said, the average selling price of crude palm oil (CPO) throughout 2021 increased by 35 percent year-on-year (yoy). The increase offset the decline in fresh fruit bunches (FFB) production by 8 percent yoy to 2.78 million tons and CPO production which fell 7 percent YoY to 687,000 tons.

According to him, the SIMP Group achieved a strong performance in 2021. SIMP's gross profit rose 71 percent yoy to IDR 5.15 trillion, operating profit rose 64 percent yoy to IDR 2.91 trillion, and EBITDA rose 42 percent yoy to IDR 4.47 trillion.

Furthermore, profit for the year attributable to owners of the parent entity SIMP jumped 320.19 percent from Rp.234.28 billion in 2020 to Rp.984.11 billion in 2021. According to Wakeford, the profit of Bimoli cooking oil producer was also driven by an increase in operating profit and a decrease financial costs.

"We are benefiting from rising commodity prices throughout 2021, primarily driven by growth in global demand for vegetable oils and reduced production due to the impact of the weather," Wakeford said in a written statement, Wednesday, March 2.

Wakeford added that the company's Edible Oils & Fats (EOF) division scored a very strong performance. Along with the growth in sales volume and average product prices, the vegetable oils and fats division resulted in a 42.09 percent increase in sales before elimination from Rp11.45 trillion in 2020 to Rp16.27 trillion in 2021.

"We will continue to prioritize capital investment in growth areas, oil palm replanting programs, and infrastructure. We will also focus on improving cost control and efficiency," he added.

In addition, SIMP continues to develop innovations to increase the productivity of oil palm plantations with the principle of sustainability. Until the end of 2021, SIMP holds total assets of IDR 35.39 trillion, including cash and cash equivalents of IDR 3.72 trillion.