FFB Production Of Palm Oil Conglomerate Anthony Salim Drops 18 Percent To 505,000 Tons In Semester I 2022

Illustration. (Photo: Doc. Antara)

JAKARTA - Production of fresh fruit bunches (FFB) and crude palm oil (CPO) of plantation companies belonging to conglomerate Anthony Salim, PT London Sumatra Indonesia Tbk (LSIP) aka Lonsum recorded a decline in the first semester of 2022. Even so, Lonsum still enjoyed an increase in net profit.

FFB production from the company's nucleus plantations decreased by 18 percent yoy to 505,000 tons during the first semester of 2022, compared to 616,000 tons in the first semester of 2021. The decline was also seen in plasma or external plantations from 129,000 tons in the first semester of 2021 to 82,000 tons in the first 6 months. 2022.

Along with the decline in FFB production, the issuer coded as LSIP noted that total CPO production fell 23 percent yoy to 127,000 tons, compared to 164,000 tons in the first semester of 2022. The decline was mainly due to unfavorable weather and oil palm rejuvenation activities.

However, CPO production in the second quarter of 2022 tends to be better than the first quarter of 2022 with a volume of 74,000 tons, from the previous 53,000 tons.

Based on its financial report as of 30 June 2022, LSIP recorded sales of IDR 2.05 trillion, down 6 percent yoy mainly due to a decrease in sales volume of palm products which was partially offset by an increase in the average selling price of palm products.

In January-June 2022, CPO sales volume only reached 108,000 tons or decreased by 36 percent yoy compared to 169,000 tons in the first semester of 2021. In the midst of declining sales, Lonsum actually recorded an increase in gross profit of 11 percent yoy to Rp 840 billion or from Rp 755 billion in the same period the previous year.

In addition, operating profit rose 7 percent yoy to Rp651 billion from Rp610 billion and EBITDA Rp907 billion, up 13 percent yoy compared to the same period last year of Rp803 billion. The profit for the period attributable to owners of the parent entity LSIP increased 9 percent Yoy to Rp549 billion, compared to Rp501 billion in the same period the previous year.

President Director of Lonsum Benny Tjoeng said Lonsum maintained a healthy financial position and there was no funding through bank loans as of June 30, 2022.

"In the midst of various challenges in the agribusiness sector, Lonsum achieved positive financial performance and increased margins in the first semester of 2022, especially in line with the increase in the average selling price of palm products, as well as our efforts to control costs and efficiency," said Benny, in a statement. his statement, quoted Monday, August 15.

He explained, Lonsum will continue to strengthen its financial position, control costs and efficiency, increase productivity, and prioritize capital expenditures, especially on oil palm rejuvenation activities and infrastructure and focus on good agricultural practices in a sustainable manner.

The area of mature oil palm plantations in Lonsum's plantations as of 30 June 2022 was recorded to have fallen to 85,259 hectares (ha) from 85,630 ha on 31 December 2021. Meanwhile, the total planted area as of 30 June was 112,880 ha, down from 114,111 ha in 31 December 2021.