JAKARTA. PT Astra Agro Lestari Tbk's (AALI) net profit plummeted 94.24% year on year (YOY) in the first semester (H1) of 2019 to Rp 43.72 billion from Rp 783.91 billion. The company's financial performance deteriorated due to the increase in cost of goods sold prompted by unstable prices.
Revenue from AALI in its published financial statements fell 5.49% (YoY) to Rp 8.53 trillion from Rp 9.02 trillion in the same period last year. The biggest decline was recorded by the palm kernel business segment and its derivatives which dropped 29.97% YoY to Rp 706.65 billion. The business segment that contributed the largest contribution (90.69%) was crude palm oil (and its derivatives) which recorded a contraction of 2.32% YoY to Rp 7.73 trillion.
In H1, cost of goods sold grew 5.8% YoY to Rp. 7.8 trillion due to increased costs of raw materials and processing as well as depreciation costs.
The increase in postal cost of revenue resulted in AALI's gross profit falling 55.84% to only Rp 729.16 billion from the previous Rp 1.65 trillion in the first half of last year. At the same time, selling and financial expenses also rose 28.38% to Rp 227.91 billion while the company's financial liabilities rose 53.82% YoY to Rp 158.46 billion.
In addition, the company, which had initially recorded a foreign exchange gain of Rp 64.72 billion in the first half of 2018, recorded a loss on foreign exchange reaching Rp 28.81 billion.
AALI CEO Santosa assessed that decline in the performance of AALI was resonable because of the depressed industry situation and the price of crude palm oil (CPO) which will not be stable in the near future.
According to Mr Santosa, the decline in AALI's production matched the company's predicted range after the harvest in the second semester of last year and a short working day during this year's Eid al-Fitr season. (AM/MS)