PALMOILMAGAZINE, JAKARTA – PT Dharma Satya Nusantara Tbk (DSNG) recorded a net profit increase of IDR 1.1 trillion in 2024, up 35.6% year-on-year (YoY). This growth was driven by a 6.5% rise in sales to IDR 10.1 trillion and operational cost efficiency, particularly from lower fertilizer prices in the palm oil segment. The palm oil business remained the company’s main revenue contributor, accounting for 87% of total earnings.
DSNG President Director Andrianto Oetomo stated that one of the main challenges in 2024 was the impact of the El Niño phenomenon from June 2023 to April 2024. “El Niño affected our palm oil plantations’ productivity, leading to a decline in crude palm oil (CPO) production. However, this also resulted in higher average selling prices (ASP) for CPO due to reduced supply,” Andrianto said in an official statement received by Palmoilmagazine.com on Friday (Feb 28, 2025).
Fresh Fruit Bunches (FFB) production from DSNG plantations dropped 7% YoY from 2.2 million tons to 2.1 million tons in 2024. Additionally, a 23% decrease in external FFB supply caused a total processed FFB decline of 12%. However, an improved Oil Extraction Rate (OER) of 23.9%—a 3% increase—helped mitigate the overall CPO production decline, which fell by only 9% YoY to 602,000 tons. Moreover, DSNG’s CPO maintained a premium market position due to its low Free Fatty Acid (FFA) content of 2.86%.
Also Read: DSNG Reports 72% Profit Growth in Q3 2024
On the other hand, the wood products segment faced pressure from a weak global property market, impacted by high interest rates and economic slowdowns in developed countries. Panel sales volume rose 17% to 116,000 m³, but the average price dropped 7% to IDR 5.7 million per m³. Meanwhile, engineered flooring sales volume declined 15% to 738,000 m², although the average price increased 13% to IDR 519,000 per m². As a result, despite a 7% YoY sales increase to IDR 1.15 trillion, the segment recorded a loss of IDR 16 billion—the first in nearly a decade.
In the Renewable Energy (RE) business, DSNG generated IDR 182.8 billion from palm kernel shell (PKS) sales. Both sales volume and average price rose 135% and 8% YoY, respectively.
Overall, DSNG’s total assets grew 7.6% YoY to IDR 17.4 trillion, primarily driven by a strategic IDR 1.3 trillion investment in its associate company, REA Kaltim. Liabilities increased by 3.1% YoY to IDR 7.5 trillion, while equity rose 11.3% YoY to IDR 9.8 trillion. These results reflect solid growth and a strong financial position. (P2)
