InfoSAWIT, JAKARTA – PT Dharma Satya Nusantara Tbk (DSNG) reported a net profit increase of Rp 1.1 trillion in 2024, a 35.6% year-on-year (YoY) increase. This growth was driven by a 6.5% increase in sales to Rp 10.1 trillion and operational cost efficiencies, particularly from lower fertilizer prices in the palm oil segment. The palm oil business segment remains the main contributor to the company's revenue, accounting for 87%.
DSNG's President Director, Andrianto Oetomo, explained that the main challenge in 2024 was the impact of the El Niño phenomenon occurring from June 2023 to April 2024. “The El Niño phenomenon affected the productivity of our palm oil plantations, leading to a decrease in CPO production. However, this condition actually drove an increase in the average selling price (ASP) of CPO due to reduced supply,” Andrianto stated in an official statement received by InfoSAWIT on Friday (February 28, 2025).
The production of Fresh Fruit Bunches (TBS) from DSNG's plantations decreased by 7% YoY from 2.2 million tons to 2.1 million tons in 2024. A 23% decrease in TBS supply from external sources also contributed to a 12% decline in total processed TBS. However, a 3% increase in the Oil Extraction Rate (OER) to 23.9% helped mitigate the decline in CPO production, which only fell by 9% YoY to 602 thousand tons. Additionally, the low Free Fatty Acid (FFA) content at 2.86% made DSNG's CPO a premium product in the market.
On the other hand, the wood product segment continues to face pressure due to a weak global property market influenced by high interest rates and economic slowdowns in developed countries. Panel sales volume increased by 17% to 116 thousand m³, although the average price fell by 7% to Rp 5.7 million per m³. Meanwhile, the sales volume of engineered flooring products decreased by 15% to 738 thousand m², despite the average price rising by 13% to Rp 519 thousand per m². As a result, despite a 7% YoY increase in sales to Rp 1.15 trillion, this segment recorded a loss of Rp 16 billion, marking its first loss in nearly a decade.
In the Renewable Energy (RE) business, DSNG recorded sales of Rp 182.8 billion from palm kernel shell (PKS) products. Both volume and average selling price increased by 135% and 8% YoY, respectively.
Overall, DSNG's total assets increased by 7.6% YoY to Rp 17.4 trillion, primarily driven by an additional strategic investment of Rp 1.3 trillion in the associated entity, REA Kaltim. Liabilities also rose by 3.1% YoY to Rp 7.5 trillion, while equity grew by 11.3% YoY to Rp 9.8 trillion. This performance reflects solid growth supported by a healthy financial position. (T2)
