PALMOILMAGAZINE, JAKARTA – PT Dharma Satya Nusantara Tbk (DSNG), a company engaged in palm oil and wood plantation, recorded a profit of Rp 842 billion in 2023, generated from a total trade value of Rp 9.5 trillion.
The palm oil sector remained the primary contributor, accounting for 88% of the income, equivalent to Rp 8.4 trillion, marking a 3% year-on-year increase to Rp 8.1 trillion.
However, the company’s overall profit saw a 30% year-on-year correction, decreasing to Rp 1.2 trillion. This decline was attributed to rising trade costs due to expensive fertilizers, reduced sales volume, and a decline in the average price of wood.
Also Read: DSNG Records Impressive Income of Rp 6.6 Trillion in Third Quarter 2023
Despite the profit adjustment, the company still achieved an EBITDA of approximately Rp 2.4 trillion in 2023.
“In 2023 selling costs increased about Rp 455 billion or 7% to 2022 because of the increasing fertilizer price. As the result, the profits of the company was significantly corrected though the selling volume and crude palm oil average selling price increased 4% and 1,9% YoY,” President Director of DSNG, Andrianto Oetomo said, as in the official statement to Palmoilmagazine.com, Thursday (29/2/2024).
In wood products, the sluggishness in many countries that happened since the late of 2022 would be the big challenge for the company in 2023. The decreasing demands from many exporter countries, such as, USA, Canada, Europe, and Japan kept happening in 2023 as same as the high interest rate for a very long time. This was negative for the property markets.
Wood products contributed to the income of the company about 12% or about Rp 1,1 trillion. The numbers got decreased 29% YoY to Rp 1,5 trillion. Panel and flooring product selling volume decreased 14% and 34% YoY for each, though the selling per quarter in 2023 still increased. Panel product average selling price decreased 17,5% YoY while flooring product average selling price increased 1,3% YoY.
“Knowing wood product markets in 2023, the company encouraged that wood product financial performance would remain positive in the challenging situation. DSNG would also have the chance to take over the markets that many wood industries once did not produce last year,” Andrianto said. (T2)
