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20250227_DSNG_Laporan Informasi dan Fakta Material_31865083_lamp3.pdf
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DSNG
INVESTOR
NEWSLETTER Volume: 56 – Februari 2025
Building Momentum: DSNG's Revenue and Profits See Meaningful Growth
In 2024, DSNG reported a 6.5% year-on-
Profit and Loss FY 2024 FY 2023 %
year (YoY) revenue growth, reaching a
record-high IDR 10.1 trillion. The Palm Oil Revenue 10,119,220 9,498,749 6.5
segment was the primary contributor, - Palm Oil 8,784,344 8,354,365 5.1
accounting for nearly 87% of the total - Wood Product 1,152,074 1,074,024 7.3
consolidated revenue, which saw a more
than 5% YoY increase. This growth was - Renewable Energy 182,802 70,360 159.8
primarily driven by a significant rise in the Cost of Revenue (7,115,019) (6,971,281) 2.1
CPO average selling price (ASP) following Gross Profit 3,004,201 2,527,468 18.9
lower-than-expected FFB production
throughout the year. As a result, the
-Margin % 29.7% 26.6% -
contribution from the Wood Product Profit Before Tax 1,640,016 1,140,643 43.8
segment declined to approximately 11% -Margin % 16.2% 12.0% -
despite a revenue increase of over 7%. The
EBITDA 3,096,491 2,421,068 27.9
Renewable Energy segment generated the
remaining revenue, showing consistent -Margin % 30.6% 25.5% -
growth in both ASP and sales volume. Profit 1,141,375 841,665 35.6
-Margin % 11.3% 8.9% -
The cost of revenue was effectively
controlled, rising by only 2%, which helped Core Profit 1,181,098 814,874 44.9
boost profit by 35.6% YoY to IDR 1.1 trillion. -Margin % 11.7% 8.6% -
Key drivers of this increase included lower
fertilizer costs, despite concerns over Financial Position FY 2024 FY 2023 %
Rupiah depreciation, higher plantation
productivity, and more efficient mill Total Asset 17,412,416 16,178,278 7.6
operations. These factors led to improved Total Liabilities 7,515,101 7,288,850 3.1
OER and lower FFA levels. Equity 9,897,315 8,889,428 11.3
Total assets grew by 7.6% YoY, largely due to an increase in strategic equity investment in PT REA Kaltim
Plantations, from 15% to 35%. REA Kaltim Group manages approximately 35,000 hectares of planted area
in East Kalimantan. This investment will strengthen the partnership between the two companies, fostering
collaboration in agronomy practices, palm oil processing, plantation replanting, and sustainability
initiatives.
Meanwhile, total liabilities saw a modest 3% YoY increase, indicating that the growth in assets was
primarily financed through the Company's robust internal financial resources. As of December 31, 2024,
the Group's outstanding USD-denominated debt accounted for only 17% of total debt, corresponding to
79% of annual USD-denominated revenue generated by the Wood Products and Renewable Energy
segments in 2024. This prudent approach to foreign currency financing minimizes the Company’s real
exposure to potential Rupiah depreciation against the USD.
DSNG Investor Newsletter —For further information, contact Investor Relations (investor.relations@dsngroup.co.id)
PT Dharma Satya Nusantara Tbk. Jl. Pulo Ayang Kav. OR No. 3 Kawasan Industri Pulogadung, Jakarta 13930 Indonesia
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PALM OIL
DSNG experienced a decrease in FFB production in 2024, consistent with GAPKI's forecast regarding the
impact of the El Niño phenomenon, which spanned from the second half of 2023 to April 2024. As a
result, CPO production and sales volume were lower than the previous year.
From the start of 2024 through the third quarter, FFB production exhibited a downward trend, with the
nine-month output totaling 1.5 million tons, a 5% YoY decline primarily due to the drier weather
conditions experienced in the six to twelve months prior. Fortunately, FFB production rebounded in the
fourth quarter, growing by 9% compared to the third quarter. As a result, full-year FFB production
reached 2.1 million tons, reflecting a 7% YoY decrease. A similar decline was observed in the supply of
external fruits from surrounding areas, leading to a 12% YoY reduction in external purchase volumes.
Despite the drop in processed FFB volume, the Company achieved a 3% YoY improvement in the OER,
which helped limit the decline in CPO production to just 9% YoY, totaling 602,000 tons. Furthermore, the
FFA level was reduced to 2.86%, compared to 2.96% in the previous year, demonstrating DSNG's
continued commitment to producing premium food-grade CPO.
CPO PRODUCTION (TON) 2023 2024 FFB PRODUCTION (TONS) 2023 2024
195,307
56,051
187,466
184,099
54,915
183,083
53,621
179,692
176,751
176,199
52,172
50,510
168,534
50,101
166,215
166,011
48,985
163,274
163,105
47,882
47,499
46,943
46,556
46,274
182,096
168,021
177,612
146,564
190,247
180,441
189,635
200,576
204,241
219,994
206,269
206,124
57,601
63,408
52,899
48,249
50,905
41,210
53,472
53,788
57,434
58,366
63,047
61,513
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
DSNG Investor Newsletter —For further information, contact Investor Relations (investor.relations@dsngroup.co.id)
PT Dharma Satya Nusantara Tbk. Jl. Pulo Ayang Kav. OR No. 3 Kawasan Industri Pulogadung, Jakarta 13930 Indonesia
Page 3
CPO market prices in 2024 remained elevated, reaching a peak toward the end of the year. Several factors
contributed to the increase in CPO prices, particularly lower production output, slower growth in both
Indonesia and Malaysia, and rising domestic consumption in Indonesia, partly due to the implementation of
B35 program.
In 2024, DSNG recorded a 12% YoY increase in CPO ASP and a 37% YoY increase in PKO ASP. The price chart
below demonstrates that the Company's ASP in the fourth quarter was lower than the market average,
primarily due to a temporary timing discrepancy between the sales contract, delivery, and revenue
recognition. These deferred prices will be accounted for in the first quarter of 2025.
CPO ASP (IDR '000/TON) KPB Medan 2023 KPB Medan 2024 YTD DSN 2023
YTD DSN 2024 DSN 2023 DSN 2024
14,448
13,467
13,196
12,527 12,858
12,060 12,962 12,788
12,015 11,803
12,038 12,616 12,563 12,959
12,488
11,394
10,958
12,014
10,929
11,135 11,019 11,308
11,481 10,510 11,135
11,642
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
PLANTED AREA
Planted Hectarage
Average Fallow Area
Planted ('000 ha) Imature Mature Total Planted
Age (yrs)
('000 ha) ('000 ha) ('000 ha) ('000 ha)
Nucleus 15.0 2.9* 79.9 82.8 1.6
Plasma 11.9 3.7 24.2 27.9 -
Total 14.3 6.6 104.1 110.7 1.6
*include 1.4 Ha replanted area
Since the second half of 2022, DSNG has initiated a gradual replanting program for its nucleus
plantation. As of December 31, 2024, the Company has felled-down nearly 3,000 hectares, with half
of this area being replanted with premium progenies. As a result of this replanting initiative, the
planted and mature hectarage will evolve over time and will be updated every six months.
DSNG Investor Newsletter —For further information, contact Investor Relations (investor.relations@dsngroup.co.id)
PT Dharma Satya Nusantara Tbk. Jl. Pulo Ayang Kav. OR No. 3 Kawasan Industri Pulogadung, Jakarta 13930 Indonesia
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WOOD PRODUCTS
The Wood Products segment still faced ongoing challenges in 2024,
primarily due to a sluggish global property market, driven by persistently
high interest rates and economic slowdowns in key export destination
countries.
The Panel’s cost leadership strategy played a crucial role in expanding its
market share, evidenced by an increase in sales volume. However, this
was offset by a decline in ASP due to unfavorable market conditions. In
contrast, the Engineering Flooring saw an 8% increase in ASP, although this
was accompanied by more than 15% drop in sales volume.
As a result, the Wood Products segment reported a loss for the first time in
nearly a decade, with the Engineering Flooring unit being the primary
contributor. Looking ahead, uncertainty persists, particularly due to
political changes in DSNG's key export markets. Nonetheless, DSNG
remains focused on navigating these challenges and is committed to
returning the business to profitability.
FY-2024 FY-2023 %YoY Q1-2024 Q2-2024 Q3-2024 Q4-2024 %QoQ
Sales Volume
Panel ('000 m3) 116.1 99.5 16.6 27.8 27.7 31.2 29.4 (5.7)
Engineered Flooring ('000 m2) 626.5 738.5 (15.2) 147.1 161.4 173.9 144.1 (17.1)
Average Selling Price (ASP)
Panel (USD/m3) 360.27 400.97 (10.2) 367.54 358.95 359.96 354.97 (1.4)
Engineered Flooring (USD/m2) 32.33 29.97 7.9 28.92 32.23 32.50 36.22 11.5
RENEWABLE ENERGY
FY-2024 FY-2023 %YoY Q1-2024 Q2-2024 Q3-2024 Q4-2024 %QoQ
Sales Volume
Palm Kernel Shell (ton) 94,933 40,397 135.0 30,019 32,050 22,003 10,860 (50.6)
Average Selling Price (ASP)
Palm Kernel Shell (USD/ton) 121.93 113.35 7.6 121.00 121.00 125.00 121.00 (3.2)
Since its establishment in 2023, DSNG's newly launched Renewable Energy segment has experienced
steady growth. Palm kernel shell (PKS) saw a 7.6% YoY increase in ASP and a remarkable 135% YoY
surge in sales volume, compared to last year's sales, which only began in the second half of 2023.
Despite recent shifts in the USA's commitment to certain sustainability initiatives, DSNG remains
confident that this will not affect PKS sales, as the Company has secured a long-term sales agreement
with its Japanese partner to supply biomass for power plants in Japan.
Furthermore, starting in 2025, the Renewable Energy segment will expand its sustainable product
portfolio by producing wood pellets through a joint venture between DSNG and Sumitomo Forestry,
Japan. The factory for this initiative is set to begin commercial operations soon in 2025.
DSNG Investor Newsletter —For further information, contact Investor Relations (investor.relations@dsngroup.co.id)
PT Dharma Satya Nusantara Tbk. Jl. Pulo Ayang Kav. OR No. 3 Kawasan Industri Pulogadung, Jakarta 13930 Indonesia
Page 5
LATEST UPDATES
DSN Group Achieve A+ Rating in FIHRRST Award
On December 10, 2024, DSNG received an A+ rating in the
FIHRRST (Foundation for International Human Rights
Reporting Standards) Award, recognizing DSN Group's
commitment to integrating human rights considerations into
its Sustainability Report.
FIHRRST is an international organization dedicated to
developing and promoting standards that demonstrate
adherence to human rights principles.
This award underscores DSNG's ongoing commitment to upholding human rights across all DSN Groups,
aligning with the Company's broader sustainability policies.
DISCLAIMER: The views expressed here contain information derived from publicly available sources that have not been independently
verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. Any forward-looking
information in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect. This
presentation should not be relied upon as a recommendation or forecast by PT Dharma Satya Nusantara Tbk. Nothing in this release
should be construed as either an offer to buy or sell or a solicitation of an offer to buy or sell shares in any jurisdiction.
DSNG Investor Newsletter —For further information, contact Investor Relations (investor.relations@dsngroup.co.id)
PT Dharma Satya Nusantara Tbk. Jl. Pulo Ayang Kav. OR No. 3 Kawasan Industri Pulogadung, Jakarta 13930 Indonesia
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