JAKARTA – PT PP London Sumatra Indonesia Tbk (LSIP) recorded a 94% increase in profit throughout 2024, despite a decline in palm oil production and sales volumes.

LSIP is a plantation company in Indonesia that is part of the Indofood group (Salim Group) through PT Salim Ivomas Pratama Tbk (SIMP) and Indofood Agri Resources Ltd.

According to an official statement from the IDX (28/2), LSIP Management revealed that the profit for the year attributable to owners of the parent entity surged 94% year-on-year (yoy), from IDR 762 trillion to IDR 1.47 trillion in 2024, with the net profit margin rising from 18% to 32%.

Additionally, the company's EBITDA also increased 61% yoy, from IDR 1.30 trillion to IDR 2.09 trillion, reflecting better efficiency in its business operations.

In terms of production, LSIP recorded a 2% yoy decline in the production volume of Fresh Fruit Bunches (FFB), from 1.377 million tonnes to 1.345 million tonnes in 2024, while crude palm oil (CPO) production also dropped 2% yoy, from 294,000 tonnes to 287,000 tonnes.

Meanwhile, CPO sales volume fell 8% yoy, from 303,000 tonnes to 280,000 tonnes. The largest decline occurred in palm kernel derivative products (PK, PKO, and PKE), which plummeted 27% yoy to 77,000 tonnes in 2024.

Despite the decline in sales volume, LSIP managed to record a 9% yoy increase in revenue, from IDR 4.19 trillion to IDR 4.56 trillion in 2024.

Profit performance also showed significant growth, with gross profit rising 73% yoy, from IDR 1.15 trillion to IDR 1.99 trillion, and operating profit soaring 104% yoy, from IDR 759 trillion to IDR 1.55 trillion in 2024.

"We succeeded in improving operational efficiency and maintaining profitability amidst production challenges," he said. (DK/ZH/VA)