KONTAN.co.id

Publicly listed agribusiness group PT Salim Ivomas Pratama and subsidiary PT PP London Sumatra Indonesia, which are controlled by the Salim family, reported strong financial performances in 2011, thanks to growing global demand for Indonesian commodities.

Salim Ivomas’s net profits stood at Rp 1.67 trillion in 2011, increasing 72 percent from Rp 971 billion in 2010. The increase was supported particularly by growing sales and the production of crude palm oil and edible oils and fats (EOF) products, including cooking oil, margarine and coconut oil.

The company reaped Rp 12.6 trillion in revenue in 2011 by selling 829,000 metric tons of CPO, 193,000 metric tons of palm kernels, 17,000 tons of rubber and 772,000 metric tons of EOF. The company’s total sales rose 33 percent from Rp 9.84 trillion in 2010.

Salim Ivomas’ CPO production increased 13 percent to 838,000 metric tons in 2011 from 740,000 metric tons year-on-year. Meanwhile, palm kernel production rose 11 percent to 195,000 metric tons from 175 metric tons.

“Sales volume for cooking oil, margarine and coconut oil increased 13 percent due to increasing demands for our brands and also the bigger capacity of our new refining facility in Jakarta,” SIMP president director Mark Wakeford said in a written statement.

Despite the bigger sales volume of plantation products, Salim Ivomas’ sales of EOF contributed about 72 percent to the total revenue.

The company suffered from increasing cost of goods sold of Rp 8.26 trillion. However, it enjoyed lower operating expenses of Rp 193.74 billion, mainly because of the implementation of a new accounting standard related to amortization of goodwill.

Salim Ivomas’ total planted area as of Dec. 31, 2011, was 254,989 hectares. About 85 percent of the total area was planted with oil palm, 9 percent with rubber, 5 percent with sugarcane and the remainder with other crops.

“In 2011, we are proud that our first South Sumatra estates were awarded certification of roundtable of sustainable palm oil [RSPO] for a further 25,000 tons of sustainable palm oil. The certification means SIMP Group now produces 195,000 tons of certified CPO per year or approximately 23 percent of our 2011’s annual production,” Wakeford said.

Meanwhile, PT PP London Sumatra Indonesia, which is simply known as Lonsum and is 59.48 percent owned by Salim Ivomas, reported Rp 1.7 trillion in net profits in 2011, increasing 64.67 percent from Rp 1.03 trillion in 2010.

“Our strong production, which is supported by the favorable price of commodities, resulted in significant improvement in our financial performance. We are able to maintain our healthy financial position,” Lonsum president director Benny Tjoeng said in a written statement.

Lonsum, one of Indonesia’s oldest and largest publicly listed plantation companies, reported sales of Rp 4.69 trillion in 2011, a 30.4 percent increase from Rp 3.59 trillion in 2010. Sales of palm products of
Rp 3.77 trillion were the main contributor to the total sales at 80.5 percent, followed by rubber sales of Rp 595.4 billion or 12.7 percent and oil palm seeds and cocoa seeds of Rp 273.9 billion or 5.9 percent.

In terms of production, Lonsum recorded 442,949 metric tons of CPO and 106,737 metric tons of palm kernel production, increasing by 21.1 percent and 15.8 percent respectively year on year.

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