JAKARTA – PT Dharma Satya Nusantara Tbk (DSNG) secured profit of IDR 508 billion in the first half of 2024, up 41% year-on-year (yoy) from the same period last year. This profit growth was driven by increased revenue seen across all business segments, increased palm products’ prices, and efficiency in operational costs as fertiliser price declined.

In the first half of 2024, DSNG booked total revenue of IDR 4.7 trillion, up 8% yoy from the same period last year. Palm segment brought in IDR 4 trillion, up 5% yoy from H1 2023 with average CPO and PKO prices that shifted up 3.2% yoy and 8.6% yoy.

President Director of DSNG, Andrianto Oetomo, mentioned that palm segment still contributed the most to the company’s revenue, reaching 86% of total revenue as productivity rate increases, especially in terms of improvement in yield or Oil Extraction Rate (OER).

“Operational performance of palm segment of the company was supported by OER improvement from 22.62% in H1 2023 to 24.05% in H1 2024. CPO production decrease of DSNG is especially triggered by decreased amount of fresh fruit purchase from external parties due to limited external fresh fruit bunches supply with the price that still grants manufacturing process margin,” added Oetomo as he explained the result of operational and financial performance of DSNG for H1 2024.

In the meantime, the wood product segment brought in IDR 558 billion or 12% of total revenue, soaring 11% yoy from H1 2023, along with the increase of sales volume of panel products of up to 25% from last year.

However, international market condition of wood products, up until now, has yet to bounce back to the expected level. It could be reflected through the panel products that saw a decrease in selling prices compared to last year, meanwhile average prices of wood flooring products slightly increased due to the different composition of sold products.

“Although the current wood product market is not performing quite well, the company still makes an effort to develop wood product business to gain better potential of performance in the future. The plan of development, as of now, is still under process before finally being executed, by putting existing market condition into consideration,” Andrianto Oetomo.

Since last year, renewable energy segment of DSNG that focuses on biomass finally started bringing in contribution to DSNG’s revenue through selling palm kernel shell to Japan.

In H1 2024, renewable energy contributed IDR 119 billion or 2.5% of total revenue, increasing nearly 300% from the same period last year.

In relation to the weakened rupiah exchange rate towards US dollar by 7% throughout the first half of 2024, Oetomo said that this weakened rupiah causes total debts in USD to increase, which is translated into rupiah on the date of report submittance according to applicable accounting standard. However, debts in USD were actually reported 12% yoy lower compared to 2023 as instalment of principal debt took place. Until the end of June 2024, its debts in USD are approximately equal to 20% of total debts of DSNG.

Oetomo further said that he is not concerned with the company’s capability in paying back its maturing USD debts as said total debts are only approximately 25% of total revenue in USD generated by wood products and renewable energy segments, thus allowing natural hedging.

In the meantime, DSNG’s positive performance also receives appreciation from several parties, either in terms of financial performance and its sustainability. In May 2024, DSNG was awarded Green Elite and Platinum Plus titles from InvestorTrust.id, in collaboration with Bumi Global Karbon (BGK) in regard of its carbon emission reduction and sustainability reporting.

Recently, DSNG is also listed as a constituent of Indeks Tempo-IDNFinancials 52 for two consecutive years under High Dividend category. The appreciation night took place at Novotel Balikpapan, East Kalimantan, and the award was received by the company on Friday, July 26, 2024. The companies listed as constituents of Indeks Tempo-IDNFinancials 52 are high-performaing publicly listed issuers selected through financial report review within the past 5 years. ***