JAKARTA. PT Salim Ivomas Pratama Tbk (SIMP), a palm oil company owned by the Salim Group, recorded a loss of Rp 258.14 billion in the second quarter (Q2 of) 2020. This increases the company's consolidated loss in the first half (1H) of 2020 to reach Rp 301 billion.
Mark Wakeford, Managing Director of SIMP, said the company was facing tremendous pressure in 1H 2020. Starting from changes in the fair value of biological assets, which reached Rp 147 billion, to an increase in income tax which reached Rp 167 billion.
Even so, Wakeford said, SIMP managed to record sales growth of 6% in 1H 2020, to Rp 6.87 trillion. This growth was supported by an increase in the average selling price of palm products, as well as oil and vegetable fats.
Therefore, the SIMP consolidation loss in 1H 2020 can be reduced by 3% from its record in 1H 2019, which reached Rp 310 billion.
On the production side, SIMP has reduced the production of Fresh Fruit Bunches (TBS) by 5% year on year (YoY) to 1.40 million tons in 1H 2020. The production of crude palm oil (CPO) also dropped by 7% YoY to 350 thousand tons .
"Our core production is mainly affected by our replanting activities in Riau and North Sumatra, drought in the second half of 2019 and high rainfall in 1H 2020," said Wakeford. (KR/AR)