PALMOILMAGAZINE, JAKARTA PT Cisadane Sawit Raya Tbk (CSRA), a palm oil plantation company, remains committed to cost discipline and aims for robust business profits in 2023, despite the ongoing occurrence of El Nino. In the first nine months of 2023 (9M23), CSRA successfully maintained its income at Rp 676.30 billion, although it declined from Rp 765.16 billion in the corresponding period last year.
According to the company’s official information, the primary reason for the income decrease was the lower average selling price of crude palm oil (CPO), which experienced an 18.5% year-on-year (YoY) decline in 9M23. Nevertheless, the company continues to prioritize sustainable development to ensure a solid level of productivity and operational resilience.
The main focus of the company is to increase margins through investment in mechanisms for efficient production and cost management. Though fresh fruit bunch (FFB) production from the main plantations decreased by 1.6% YoY in 9M23 because of the weather, the company anticipated long-term production by conducting a sustainable replanting program.
Also Read: Cisadane Sawit Raya Expanding Plantations in South Sumatra
“It is important to get a replanting program as a way for CSRA to avoid unproductive palm oil trees because of their ages. Sustainable replanting with superior seeds is crucial to escalating yield production in the plantations,” the company noted, as Palmoilmagazine.com quoted, on Wednesday, December 27, 2023.
Though the macro economy may not be running well, including higher inflation that would have something to do with the economy nowadays, CSRA performance in 9M23 remained stable. The gross profits reached Rp 317,25 billion in 9M23, representing a decrease of 35.7% from the same period last year.
The company keeps controlling cost management, though it escalated the cost of goods sold by 32.1% YoY because of the increasing fertilizer price. By having sustainable business strategies, CSRA successfully got profits up to Rp 180,90 billion in 9M23, though the numbers decreased by 50.3% compared to the same period last year. (T2)
