InfoSAWIT, SINGAPORE – Kencana Agri Limited (Kencana or Group) reported its financial performance that ended by 30 June 2024. Even though the income got decreased 12% to the same period last year, some significant factors had something to do with the performance of the group.
The decreasing income mostly happened for the cheaper average selling price (ASP) of crude palm oil (CPO) and palm kernel (PK). In the first semester of 2024 (1H24), CPO ASP was US$ 706 per metric ton (MT), got decreased 12% to 1H23 that was US$ 798 per MT. PK ASP did get cheaper from US$ 407 per MT in 1H23 to be US$384 per MT in 1H24. But it got the balance by the increasing PK selling that reached 5%, from 13.047 MT in 1H23 to be 13.715 MT in 1H24. CPO selling was relatively stable to the same period last year.
As in the official statement to InfoSAWIT, the selling costs of the group got decreased 22% from US$ 51,9 million to be US$ 40,2 million in 1H24. This made the increasing gross profit margin from 16% to be 26%. The decreasing cost mostly happened for the nursery and more moderate fertilizer application than those last year. Earnings before interest, taxes, depreciation, and amortization (EBITDA) reached US$ 2,2 million while the income tax reached US$ 1,6 million that relatively got higher than institutional income tax in Indonesia that reached 22%.
The net profits of the group significantly got decreased 70% to be US$ 0,6 million in 1H24 to US$ 1,9 million in 1H23. It happened for the loss of currency that reached US$ 2,1 million that mostly derived from the loans of the banks that dominated in American dollar namely when rupiah got depreciated 7% towards American dollar during the period.
The current assets of the group got increased US$ 6,0 million to be US$ 88,5 million on 30 June 2024 namely happened for the increasing supply. The non-current assets of the company got decreased US$ 14,4 million, namely happened for the loss of foreign exchange translation and the mature plant depreciation.
Chairman of Kencana, Henry Maknawi said that CPO price in 1H24 was relatively stable even though the global scale - demands got decreased by the supply issue because of dry season. (T2)
