Sampoerna Agro Business Continuity Planning
As well as, Sampoerna Agro Business Continuity Planning. Sampoerna Agro Tbk (SGRO) is optimistic that it can boost its crude palm oil (CPO) production capacity in the fourth quarter of this year. Overall, the company’s CPO production volume in the second half of this year will be better than in the previous semester.
Michael Kesuma, Head of Investor Relations at SGRO, said that in the last few months the harvest cycle in the garden has start to improve with a significant increase in the July-August period. It is hope that this October will continue to increase, he said. As for SGRO’s production volume up to the third quarter yesterday.
Management has not been able to share the details because it is still being calculate. But entering the fourth quarter, we are optimistic that production will be better than the third quarter, explain Michael. In fact, for the entire second semester of this year, SGRO projects that CPO production volume will increase by 30%-50%.
Compare to the first half of 2020 now. The company also previously predict that the production volume in the second semester will contribute 60 percent of the total production volume for this year. As for the full year this year, Michael said that the management estimates that production volume.
Business Continuity Planning Results
It will tend to be stagnant and even slightly decrease compared to last year’s results. Reflecting on the company’s financial statements last year, SGRO’s CPO production volume reached 385,079 tons. Production, which has not increased this year, is influenced by the season and weather which has an impact on palm oil harvests.
As well as the condition of the world palm commodity market. Meanwhile, regarding the price trend, according to Michael, in the last few weeks, it is still improving. The selling price of the company’s CPO in the last two weeks has been around Rp. 9,000 per kilogram (kg), fell to around Rp. 8,000 per kg and around.
The price tends to fluctuate, so Michael is reluctant to project further trends in the company’s selling price. As for reflecting on the company’s financial statements last year, the average selling price of SGRO CPO throughout 2019 was around IDR 6,800 per kg. Where at the end of the year the CPO price.
It was at a high level of MRY (Malaysian Ringgit) 3,025 per ton or around Rp. 10,000 per kg. In terms of sales volume, previously management had previously revealed that during the first semester of 2020 SGRO’s sales volume decreased by 9% on an annual basis. This is due to a decrease in production.
Business Continuity Planning 2H20
In the first half of this year due to the impact of the weather and the dry season. This causes the supply of palm oil to shrink, resulting in an increase in prices. This condition caused SGRO’s net income during the first half of 2020 to continue to increase by 17.51% on an annual basis to Rp 1.60 trillion.
Even though in terms of volume it decreased. Meanwhile, cost of goods increased only 8.8% year on year (yoy) to Rp 1.23 trillion, so that the company’s gross profit soared 59.26% on an annual basis to Rp 367.03 billion. From the bottomline side, the company has been eroded by various other expense items.
As a result that SGRO’s net profit in the first half of this year was recorded at Rp. 971 million, this figure is better than the same period last year where the company posted a net loss of Rp. 19.22 billion. Regarding capital expenditure at the end of this year, the company said there was no major expenditure or new investment.
Business Continuity Planning Budgets
Michael said the company focuses on Business Continuity Planning (BCP), aka maintaining business continuity in the midst of the Covid-19 pandemic by carefully spending budgets. For your information, in the first semester of this year, the company has absorbed capital expenditures of Rp. 217 billion.
About 70 percent of which is used for investment, maintenance and plant maintenance, while the remaining 30 percent is for maintenance of fixed assets such as buildings and production lines.
