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PT PP London Sumatra Indonesia Tbk (LSIP), a prominent palm oil producer and subsidiary of conglomerate Anthony Salim, posted mixed financial results for the first quarter of 2022. While its top line saw a significant dip, the company managed to achieve modest profit growth.
The Jakarta-based company reported sales of IDR 765 billion for Q1 2022. This represents a substantial 36 percent decrease compared to the IDR 1.19 trillion recorded in the same period last year.
LSIP management attributed this revenue decline primarily to a decrease in the sales volume of its palm products. This occurred despite an increase in the average selling price (ASP) for these products, as noted in a statement released on Thursday, June 2.
Despite the sales downturn, London Sumatra recorded a gross profit of IDR 440 billion, a 3 percent year-on-year increase. After accounting for other expenses and tax, the company's net profit attributable to owners of the parent company rose by 2 percent year-on-year, reaching IDR 305 billion. The management explained that this improved net profit performance was driven by the growth in gross profit and a reduction in operating expenses, partially offset by increases in other operational costs.
LSIP emphasized its robust financial standing, with total assets amounting to IDR 12.21 trillion as of March 31, 2022. This figure includes IDR 3.46 trillion in cash and cash equivalents, and notably, the company reported no funding through bank loans.
The quarter saw a decline in production across key metrics. Core Fresh Fruit Bunch (FFB) production decreased by 29 percent year-on-year to 226,000 tonnes, mainly due to unfavorable weather conditions and ongoing replanting activities. Concurrently, total Crude Palm Oil (CPO) production fell by 39 percent year-on-year to 53,000 tonnes. In line with reduced production, CPO sales volume dropped significantly by 66 percent year-on-year to 33,000 tonnes, while sales volume for Palm Kernel (PK) products decreased by 29 percent year-on-year to 18,000 tonnes.
Source: VOI.id