JAKARTA (Yosefardi) – Plantation firm PT Salim Ivomas Pratama Tbk (SIMP) posted net sales of Rp13.28 trillion in 2013 or a 4% decrease compared to Rp13.84 trillion in 2012 mostly attributable to lower sales volume and average selling price of bulk and coconut oil.
Operating profit fell 28% to Rp1.77 trillion with operating margin of 13% due to lower net sales. This was further affected by rising wages and newly matured plantations; contributing to higher unit production costs.
Profit attributable to owners of the parent dropped 55% to Rp524 billion from Rp1.16 trillion in 2012, due to lower operating profit, lower finance income and higher finance cost as a result of higher losses on forex a rising from financing activities.
Nonetheless in 4th quarter of 2013, the Group achieved a strong result of net sales of Rp3.7 trillion, a 13% increase compared to 4th quarter 2012 mainly attributable to the combined effects of higher average selling prices and higher sales volume of palm products, cooking oil and margarine.
2013 was a challenging year for the agribusiness sector as a whole but in 4th quarter of 2013 the company achieved strong results following the strong recovery in commodity prices for agriculture crops as well as higher sales volume of palm products, cooking oil and margarine.
On the production front in 2013, SIMP achieved FFB nucleus production of 2,895,000 tons, down 3% y-o-y as a result of lower production from Sumatra, while CPO production in 2013 decreased 8.0% to 810,000 tons mainly due to lower purchases of FFB from external parties.