DSNG - PT. Dharma Satya Nusantara Tbk

Rp 520

-10 (-1,92%)

JAKARTA – PT Dharma Satya Nusantara Tbk (DSNG) booked revenue growth in the first half of 2023 amidst the trend of weakening Crude Palm Oil (CPO) price. The company recorded revenue of IDR 4.4 trillion, or 15% increase, annually. The palm segment was still the main contributor to the revenue of DSNG, covering 88% of the total revenue, amounting to IDR 3.9 trillion.

“In this period, the productivity of plantations and the sales volume increased, although the CPO price was lower than the same period last year. The production of fresh fruit bunches rose 14%, whereas the CPO sales volume shifted significantly by approximately 41%, in line with higher external purchase of fresh fruit bunches,’ Andrianto Oetomo, President Director of DSNG, mentioned.

Until the first half this year, the company managed to collect net profit of IDR 360 billion. It decreased 23%, mostly caused by increased fertiliser costs and increased fresh fruit bunches purchase volume from external parties to boost its revenue.

Meanwhile, the company’s EBITDA was recorded at IDR 1.04 trillion, shrinking 13% from the numbers in the same period last year. The EBITDA margin was 24%, also weakening from 31.4% seen in the first half last year.

The total assets were seen climbing 4% to IDR 16 trillion, resulted from added fixed assets and inventories. Meanwhile, the total liabilities rose 8% to IDR 7.8 trillion, while the total equity also shyly increased 0.5% to IDR 8.2 trillion.

In terms of operational aspects, the production of fresh fruit bunches arrived at 1.04 million tons, shifting 14% upwards and in line with the ongoing recovery of palm trees. With the extra volume of external purchase of fresh fruit bunches, the CPO production grew 23% to 304,335 tons.

In this period, DSNG also managed to fix its FFA level from 3.87 to 3.07, a guarantee for improved quality of its CPO.

On the other hand, the timber product segment was still weak after dealing with the bullish market last year. The sales volume of panel products was lower than the previous year due to overstock in Japan, while the US, Canada, and Europe are still affected by relatively-high inflation. Therefore, the wood product segment only recorded IDR 505 billion of revenue, declining 36% year-on-year (yoy).

However, in this second quarter, the wood product segment recorded improvement in sales volume compared to the first quarter, in which panel products rose 7.8%, and engineered flooring products increased 13.9% quarter-on-quarter (qoq). (DSNG/ZH)