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Palm oil trees undergone rejuvenation, LSIP’s sales dropped

15 August 2022 09:34

JAKARTA. The sales of PT London Sumatra Indonesia Tbk (LSIP) in the first half of 2022 slipped off 6% to IDR 2.05 trillion. This small inconvenience happened due to the weather and the rejuvenation process of palm oil trees. Thankfully, LSIP still managed to record a profit.

Based on the financial statement, until June 30, 2022, LSIP recorded 6% sales shrinkage from the same period in 2021 to IDR 2.05 trillion. The slippage coincided with the decreased sales volume by 36% from 169,000 tons in H1 2021 to 108,000 tons in H1 2022.

It is further revealed that the depleting sales volume was preceded by the downturn in the fresh fruit bunch production in the nucleus plantation. It went down 18% from 616,000 tons in H1 2021 to 505,000 tons in H1 2022. Likewise, in the plasma plantation, the production also dropped from 129,000 tons to 82,000 tons. Furthermore, CPO production also declined 23% from 164,000 tons to 127,000 tons.

Last Sunday (14/8), Benny Tjoeng, President Director of London Sumatra Indonesia, said that on top of the generally rising price of palm products, the company has also tried to maintain a healthy financial sheet and avoid financing through bank loans. Therefore, LSIP ended up with a satisfactory financial performance, indicated by an 11% margin increase, in the first half of 2022 with IDR 840 billion of profit. (AM/ZH)

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