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Page 1
PRESS RELEASE
For Immediate Release
CSRA Anniversary – 28 October 2023
MAINTAIN OPERATIONAL EFFICIENCY THROUGH GRADUAL MECHANIZATION:
CSRA has a solid strategy to further develop the business
JAKARTA, October 31, 2023 – In a volatile and high-cost environment PT Cisadane Sawit Raya Tbk
(Bloomberg Stock Code: CSRA IJ) is pleased to provide the following interim unaudited financial report for
the third quarter of 2023 hereinafter refer as 9M23. The Company’s sales revenue was Rp676.30 billion
during 9M23, compared to the same period last year when it amounted to Rp765.16 billion. The
underlying average sales price continuing to moderate through the year.
Key Highlights:
❖ Maintain stable earnings in the third quarter
CSRA maintains stable revenue and a consistent growth trajectory while remaining focus on its
strategy, demonstrating the resilience of its business model during turbulent times.
❖ Control the expenses to generate an acceptable result
Operating profit decreased by 50.3% to Rp180.90 billion from Rp364.08 billion in 9M22. The
operating margin was 26.7% compared to 47.6% in the same period previous year. The decline was
caused by lower average selling prices compared to the same period last year.
❖ Focus continually on managing profit to remain solvent
The net earnings closed at Rp118.99 billion reflecting a 51.9% decreased over the same period last
year when it was Rp247.7 billion. This decrease has led to a reduce in net margins which now stand
at 17.6%.
❖ Strong Balance Sheet offer potential long-term value
CSRA's asset position stood at Rp1.84 trillion, showing an increase from its position on December 31,
2022 at Rp1.83 trillion. Meanwhile, the company's total liabilities in 9M23 amounted to Rp756.04
billion compared to Rp872.14 billion at the end of 2022. Additionally, the equity reached Rp1.08
trillion, a significant rise from to Rp963.11 billion at the end of the previous year. The decrease in
bank debt from period to period is done to strengthen the capital structure.
❖ Examine CSRA financial health
CSRA aim to implement a comprehensive risk management approach throughout the Company,
underpinned by its core values. This is detailed in CSRA risk management framework, which
encompasses key principles and practices, both in financial and non-financial aspects. The interest-
bearing debt / equity stands at 0.57x, lower than 2022 level at 0.67x. Additionally, the current ratio
position at the more secure level measuring at 1.93x, debt to ebitda at 3.06x and net debt to ebitda
at 2.78x showing safe indicator.
1
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Page 2
PRESS RELEASE
For Immediate Release
CSRA Anniversary – 28 October 2023
On October 28, 2023, CSRA celebrated its 40th anniversary by inaugurating its new 45 tph capacity of
palm oil mill (PKS 2) at Tapanuli Selatan regency. Due to its scale and capabilities, PKS 2 stands out
and will significantly contribute to advancing the Company’s strategic plan aligning with the criteria
established by the Indonesia Sustainable Palm Oil (ISPO). The Company’s 40 anniversary celebration
include a series of initiatives held throughout the entirety of 2023 and initiatives which will be held
at the beginning of 2024.
Consolidated Income Statement Summary
In Rp Billion 9M23 9M22 Change (%)
Sales Revenue 676.30 765.16 -11.6%
Gross Profit 317.25 493.34 -35.7%
Gross Margin (%) 46.9% 64.5%
Operating Profit 180.90 364.08 -50.3%
Operating Margin (%) 26.7% 47.6%
EBITDA 246.75 412.08 -40.1%
EBITDA Margin (%) 36.5% 53.9%
Net Income 118.99 247.71 -51.9%
Net Income Margin (%) 17.6% 32.4%
Operational excellence provides ample opportunities for potential business growth
CSRA remain highly focused on maintaining cost discipline. The Company continues to target healty
operating expense for 2023, excluding the impact of El Nino. Throughout the first nine months of 2023,
CSRA displayed strong top-line of Rp676.30 billion although decreased from Rp765.16 billion in 9M22.
This was mainly driven by lower average selling price on YoY basis. Its CPO’s ASP decreased by
approximately 18.5% YoY in 9M22 and its FFB and kernel selling price that declined 17.3% and 33.8% YoY
respectively.
In addition, the company has prioritized sustainable development to achieve solid productivity levels and
operational excellence. A key strategic focus has been on increasing margins through investments in
mechanization to enhance production efficiency and cost management.
Due to facing weather disruptions during this period, the internal estate's FFB production decreased by
1.6% YoY in 9M23, albeit falling below the target set. Nonetheless, the company anticipates long-term
production growth, given the majority of its matured estates are under 18 years old. The age of oil palm
2
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PRESS RELEASE
For Immediate Release
CSRA Anniversary – 28 October 2023
trees plays a vital role in fruit bunch production, with older trees yielding fewer bunches. Aging palm trees
pose challenges such as increased labor demands and difficulty in assessing bunch ripeness.
To avoid the accumulation of lower-yielding older palms, continuous replanting with new high-yield seed
varieties is crucial. CSRA is placing a strong emphasis on improving palm oil yields in existing plantations
through the systematic replanting of old crops and the implementation of effective fertilization patterns.
In 9M23, the FFB yield stood at 15.0 tons/ha, a decrease from the 16.3 tons/ha achieved in 9M22 due to
weather and rainfall. CSRA is dedicated to leveraging its strengths by strategically investing in areas with
substantial growth opportunities. This includes increased investment in technology to enhance
operational efficiency, as well as efforts to energize growth through the development of a robust
corporate culture, streamlined workflows, and equipping staff with the skills needed for the future.
Table 1. Production Highlights
9M23 9M22
Planted Area 19,425 18,879
FFB Nucleus (in MT) 259,948 264,237
Yield TBS (ton/ha) 15.0 16.3
CPO Production (in MT) 35,946 27,436
OER 21.1% 20.6%
Kernel Production (in MT) 8,258 6,894
KER 4.9% 5.2%
Macroeconomic headwinds, including higher inflation and a weaker economic outlook, continue to impact
the current economic condition. However, our 9M23 performance remained stable, and operation
portfolios remain relatively benign when compared to historical levels, offset by slightly higher expenses.
Gross Profit reached Rp317.25 billion in 9M23, representing a 35.7% decrease compared to Rp493.34
billion in 9M22, with a margin of 46.9% in 9M23 from 64.5% in 9M22. CSRA continue to monitor and
control cost management, as evidence by the 32.1% YoY increase in the cost of goods sold amid a
significant increase in fertilizer prices.
The Company has consistently implemented a sustainable business strategy to maintain any positive
momentum in its business performance. CSRA achieved 9M23 operating profit of Rp180.90 billion,
representing a 50.3% decrease compared to 9M22, with a margin of 26.7%, compared to 47.6% on the
same period last year. This outstanding operating profit performance had a positive impact on strong
9M23 net profit of Rp118.99 billion, although consider as decreased of 51.9% YoY. Through disciplined
3
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PRESS RELEASE
For Immediate Release
CSRA Anniversary – 28 October 2023
cost management, optimal operational efficiency, and agile mechanization practices, CSRA continues to
strengthens its position to be a national leading agribusiness company.
Table 2. Highlights of Consolidated Statement of Income
In Rp billion
9M23 9M22 %
Sales Revenue 676.30 521.54 -11.6%
Cost of Goods Sold -359.05 -172.43 32.1%
Gross Profit 317.25 349.12 -35.7%
Gross Profit Margin 46.9% 64.5%
Operating Expense -136.35 -129.26 5.5%
Operating Profit 180.90 364.08 -50.3%
Operating Profit Margin 26.7% 47.6%
Gain Arising from Changes in Fair Value of
Biological Assets 10.21 -7.34 239.1%
Gain (Loss) on Foreign Exchanges – Net 0.1 0.07 42.9%
Tax Penalties and Expenses -0.2 -0.03 56.6%
Others – Net -0.01 -0.20 -95.0%
EBIT 192.69 359.32 -46.4%
EBIT Margin 28.5% 46.9%
Finance Income 1.77 2.76 -35.9%
Finance Costs -32.85 -37.01 -11.2%
Income Before Tax 159.84 322.31 -50.4%
Income Tax -40.85 -74.6 -45.2%
Income for the period 118.99 247.71 -51.9%
Net Income Margin 17.6% 32.4%
Non-Controlling Interest 0.00 0.00 0.0%
Income for The Year Attributable To Owners of
the Parent Entity 118.99 247.71 -51.9%
-40.1%
EBITDA 246.75 412.09
EBITDA Margin 36.5% 53.9%
The delivery of CSRA financial targets remains on track
The Company strategy has empowered CSRA to fortify its balance sheet, providing a strong foundation
for growth in the current condition, while maintaining cost discipline. This has instilled confidence within
4
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Page 5
PRESS RELEASE
For Immediate Release
CSRA Anniversary – 28 October 2023
CSRA to achieve its target guidance for 2023. The total assets as of September 30, 2023 were at the level
of Rp1.84 trillion or increased by 0.2% from the FY22 position at Rp1.84 trillion. The most significant
increase can be attributed to fixed assets which are considered both productive and liquid. The non-
current assets of 9M23 increased by 9.2% compared to FY22 aligning with the rise in the proportion of
immature crops.
CSRA strong financial position is a testament to its successful business operations and reflects effective
management. It is serves as a key indicator of the long-run viability of the Company. The total liabilities of
9M23 stood at Rp756.04 billion, decrease by 13.7% compared to the end of 2022 aligning with the
payment of interest-bearing debt. The long-term bank debt amounted to Rp435.57 billion, reflecting a
decrease of 12.9% compared to the position at the end of 2022 after deducted by net of current
maturities. Conversely, short-term liabilities decreased by 20.9% after the payment of matured long-term
bank loans.
The equity position was at the level of Rp1.08 trillion as of September 30, 2023, an increase of 12.3%
compared to the position at the end of 2022 due to an increase in retained earnings on current period
income. CSRA intend to continue to manage capital efficiently, optimizing the working capital operating
cycle, minimizing the cost of cash spent on the working capital, and maximizing the return on current asset
investments.
Table 3. Consolidated Statement of Financial Position
In Rp Billion
9M23 FY22
ASSETS
CURRENT ASSETS
Cash and cash equivalents 68.62 263.73
Trade Receivables from Third Parties - Net 18.56 13.97
Other Receivables from Third Parties 3.45 3.98
Inventories - net 70.11 36.77
Biological Assets 106.53 96.32
Prepaid Taxes 19.32 4.15
Advanced and Prepaid Expenses 96.15 83.59
TOTAL CURRENT ASSETS 382.74 502.53
NON-CURRENT ASSETS
Due from Related Parties 29.54 11.67
Plasma Receivables 56.20 44.22
Investment Properties 0.68 0.68
Bearer Plants:
- Mature Plantation - Net of Accumulated Depreciation 528.11 535.23
5
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Page 6
PRESS RELEASE
For Immediate Release
CSRA Anniversary – 28 October 2023
9M23 FY22
- Immature Plantations 186.43 172.85
- Nurseries 13.02 10.50
Fixed Assets - Net of Accumulated Depreciation 626.51 542.53
Tax Amnesty Assets - Net of Accumulated
Deferred tax asset 0.23 0.35
Other Assets - -
Cultivation Rights (HGU) - -
Goodwill 14.67 14.67
TOTAL NON-CURRENT ASSETS 1,455.40 1,332.73
TOTAL ASSETS 1,838.14 1,835.25
LIABILITIES
Bank Loan - 50.00
Trade payables 57.44 47.23
Other Payables 27.31 12.77
Taxes Payables 9.41 37.64
Accrued Expenses 13.24 12.53
Advances from customers 0.01 0.00
Long-term Liabilities - Current Maturities:
- Bank Loans 85.93 85.85
- Consumer Financing Loans 3.28 3.34
TOTAL CURRENT LIABILITIES 198.61 251.25
Due to Related Party 33.23 33.23
Long-term Employee Benefits Liability 48.76 50.27
Deferred Tax Liabilities 37.57 33.78
Long-term Liabilities - Net of Current Maturities:
- Bank Loans 435.57 500.03
- Consumer Financing Loans 2.31 3.01
TOTAL NON-CURRENT LIABILITIES 557.44 620.89
TOTAL LIABILITIES 756.04 872.14
EQUITY
Equity attributable to owners of the Parent Entity 1,082.08 963.09
Non-controlling interests 0.015 0.015
TOTAL EQUITY 1,082.09 963.11
TOTAL LIABILITY AND EQUITY 1,838.14 1,835.25
6
HEAD OFFICE MEDAN OFFICE
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Page 7
PRESS RELEASE
For Immediate Release
CSRA Anniversary – 28 October 2023
Key Financial Ratios
CSRA remain on track for 9M23 adjusted operating expenses to be broadly stable compared with last year
same period. The Company's 9M23 gross margin of 46.9% which increased significantly from 64.5% in
9M22 due to an increase in fertilizer and maintenance. At middle line, operating margin also decreased
to 26.7% compared to 47.6% in 9M22 mostly from human resources development. This is generally
identifying the company concern on its human capital that considered as Company’s long-term
investment. At the bottom line, the Company also managed to maintain its net margin to 17.6% in 9M23,
from 32.4% in 9M22, keep its debt to EBITDA to 3.06x in 9M23, from 2.11x in 9M22 and net debt to EBITDA
at 2.78x, from 1.48x in same period last year.
9M23 Current Ratio is in a much healthier position at level of 1.92x compared to FY22. The higher the
ratio, the greater a business’s ability to pay off its short-term liabilities. The company's assets/equity
was 1.69x in 9M22, much lower than 1.91x in FY22, determines the company’s leverage position defining
its capability to pay off its debt. Another favorable aspect, on the interest-bearing debts side, shows the
net gearing ratio safer, at the level of 0.64x (lower better).
Table 4. Key Financial Ratios
9M23 9M22
Profitability ratios
Gross Margin 46.9% 64.5%
Operating Margin 26.7% 47.6%
EBITDA Margin 36.5% 53.9%
Net Margin 17.6% 32.4%
9M23 FY22
Leverage
Current Ratio 1,93 x 2.00 x
Asset/equity 1,69 x 1.91 x
Interest Bearing Debts/Equities 0,57 x 0.67 x
Net Debts/Equities 0,64 x 0.63 x
2023 Outlook
Palm oil prices have declined by more than 40% since reaching an all-time peak in May 2022. This drop is
attributed to ample global supplies amid weaker than expected demand, although prices have recently
stabilized. Meanwhile, the emergence of El Nino phenomenon could potentially affect global agricultural
yields and alter trade patterns in the 2023-24 season, according to agricultural bodies, meteorological
7
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Page 8
PRESS RELEASE
For Immediate Release
CSRA Anniversary – 28 October 2023
agencies and trade analysts. If prolonged dry conditions occur, 2024 supplies may tighten further, as CPO
production could remain flat or even decrease year-on-year.
The research report stated that the situation warn attention with the anticipation of tighter palm oil
supplies going into 2024 and rising weather-related risks. In Indonesia, the drier weather caused by the El
Nino phenomenon may lead to forest fires and threaten harvests. The announcement of El Nino and its
potential impacts on the palm oil market has highlights the significant relationship between climate
patterns and agricultural sectors. El Nino has potential to disrupt palm oil production, particularly in
Southeast Asia.
“As we completed the first phase of our strategy at the end of 2022, the changes we implemented began
to yield an improved financial performance. Now nine months into 2023, our financial performance
continues to strengthen, thanks to better average selling price. As we transition into the next phase of our
strategy which centers on value creation, I am optimistic about our capacity to maintain robust business
performance.” stated Seman Sendjaja, Director of Finance & Strategic Development.
Despite the impact of this year El Nino event on production and trade may become more pronounced in
2024 the company will continue to cite new uses mechanization and advancing its technology capabilities.
Mechanizations strategies are aimed at enhancing business efficiency and the effectiveness. CSRA
believes that these initiatives, combined with ongoing technological advancement and business process
improvement, will position CSRA for increased earnings over the medium term allowing it to leverage the
economies of scale embedded in its business model. As we approach the end of 2023, planned capital
expenditures are now forecasted to be Rp180 billion, approximately 75% has already been absorbed.
These funds are earmarked for strategies which are expected to meet company’s strategic investment in
land clearing and planting within the Company’s landbank in South Sumatera region, on site
infrastructure, and development of PKS-2 in Tapanuli Selatan regency.
In addition, CSRA should closely monitor the broader economic landscape. Slower export growth could
result from a deceleration in global economic growth. However, Indonesia's core commodity exports, such
as palm oil, are expected to remain in demand due to ongoing factors like the Ukraine war, upcoming
presidential elections, and the potential impacts of El Nino. It's important to note that there are downside
risks, including weakened global demand, capital outflows, currency pressures, and tight global financial
conditions, which could potentially impede the momentum of palm oil prices.
“As the business continues to expand, there is still much work to be done, particularly in the light of the
numerous challenges in the global economy. However, I am confident about the future as we advance
further into the next phase of our strategy, focusing on opportunities to drive value creation, optimize
revenue and retain tight cost control”, Seman continued.
8
HEAD OFFICE MEDAN OFFICE
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Page 9
PRESS RELEASE
For Immediate Release
CSRA Anniversary – 28 October 2023
“The framework promotes continual monitoring, fosters risk awareness and encourages sound
operational and strategic decision-making. Additionally, it supports a consistent approach to identifying,
assessing, managing and reporting the risks inherent in our activities, all while maintaining stringent cost
control. We remain committed to actively reviewing and enhancing our risk management framework,
with clear accountabilities in place,” he concluded.
--------oOo-------
9
HEAD OFFICE MEDAN OFFICE
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Page 10
PRESS RELEASE
For Immediate Release
CSRA Anniversary – 28 October 2023
About PT Cisadane Sawit Raya Tbk at Glance:
PT Cisadane Sawit Raya Tbk. and its subsidiary entities are prominent players in
the national palm oil plantations industry with operation spanning North
Sumatra Province and South Sumatra Province. The Company places strong
emphasis on resource utilization effectiveness and efficiency aiming to
establish itself as reputable and fully integrated agribusiness enterprise. The
company operates Palm Oil Mill (PKS) in its plantation area which commenced
operations in 2007 with a capacity of 45 tons per hour (tph) in Labuhan Batu
regency and another PKS with a capacity of 45 tph in Tapanuli Selatan. The
Company manage total area of 29,000 hectares with 20,000 hectares under
cultivation. Its FFB production amounts to an impressive 319,071 tons per year.
CSRA made its public debut on the Indonesian Stock Exchange (IDX) on January
9th, 2020.
Follow Company’s Social Media for news updates and vacancies:
csr.official @csrofficial3 @csra.official Cisadane Sawit Raya Tbk - CSRA cisadane sawit raya
For more information, please contact:
Iqbal Prastowo - Corporate Secretary
T +6221 6667 3312-15 | F +6221 6667 3310-11
E corpsec@csr.co.id | iqbal@csr.co.id
W www.csr.co.id
This press release has been prepared by PT Cisadane Sawit Raya Tbk.(“CSRA”) and is circulated for the purpose of general information only. It
is not intended for any specific person or purpose and does not constitute a recommendation regarding the securities of CSRA. No warranty
(expressed or implied) is made to the accuracy or completeness of the information. All opinions and estimations included in this release
constitute our judgment as of this date and are subject to change without prior notice. CSRA disclaims any responsibility or liability whatsoever
arising which may be brought against or suffered by any person as a result of reliance upon the whole or any part of the contents of this press
release and neither CSRA nor any of its affiliated companies and their respective employees and agents accepts liability for any errors,
omissions, negligent or otherwise, in this press release and any inaccuracy herein or omission here from which might otherwise arise.
Forward-Looking Statements
Certain statements in this release are or may be forward-looking statements. These statements typically contain words such as “will”, “expects”
and “anticipates” and words of similar import. By their nature, forward-looking statements involve a number of risks and uncertainties that could
cause actual events or results to differ materially from those described in this release. Factors that could cause actual results to differ include,
but are not limited to, economic, social and political conditions in Indonesia; the state of the property industry in Indonesia; prevailing market
conditions; increases in regulatory burdens in Indonesia, including environmental regulations and compliance costs; fluctuations in foreign
currency exchange rates; interest rate trends, cost of capital and capital availability; the anticipated demand and selling prices for our
developments and related capital expenditures and investments; the cost of construction; availability of real estate property; competition from
other companies and venues; shifts in customer demands; changes in operation expenses, including employee wages, benefits and training,
governmental and public policy changes; our ability to be and remain competitive; our financial condition, business strategy as well as the plans
and remediation. Should one or more of these uncertainties or risks, among others, materialize, actual results may vary materially from those
estimated, anticipated or projected. Specifically, but without limitation, capital costs could increase, projects could be delayed and anticipated
improvements in production, capacity or performance might not be fully realized. Although we believe that the expectations of our management
as reflected by such forward-looking statements are reasonable based on information currently available to us, no assurances can be given that
such expectations will prove to have been correct. You should not unduly rely on such statements. In any event, these statements speak only as
of the date hereof, and we undertake no obligation to update or revise any of them, whether as a result of new information, future events or
otherwise.
10
HEAD OFFICE MEDAN OFFICE
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Jl. Pluit Selatan Raya, Jakarta Utara 14440 Medan 201
T +6221 6667 3312-15 T +6261 661 4328
F +6221 6667 3310-11 F +6261 662 7913
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