Salim Ivomas Pratama (SIMP) Sales Drop 10% to IDR 16 Trillion in 2023

ISSUER NEWS - JAKARTA. PT Salim Ivomas Pratama Tbk (SIMP) recorded a 10% year-on-year (yoy) decrease in sales to IDR 16 trillion in 2023.

Quoting the audited consolidated financial report for the year ending December 31, 2023, throughout 2023, the production of Fresh Fruit Bunches (TBS) of SIMP core reached 2.78 million tons or decreased by 1% yoy compared to the previous year. Meanwhile, the production of Crude Palm Oil (CPO) decreased by 4% yoy to 708,000 tons.

The CEO of PT Salim Ivomas Pratama Tbk Group, Mark Wakeford, said that the decrease in sales last year was due to the decrease in the average selling price of palm products and Vegetable Oil & Fat (EOF) products, which was partially offset by an increase in the sales volume of branded palm products and EOF products.

“The agribusiness sector in 2023 still faced various challenges, especially the impact of weather and falling commodity prices,” said Mark, in the disclosure of information on the Indonesia Stock Exchange (IDX) on Thursday (29/2).

According to him, the decrease in the production of SIMP core TBS last year was influenced by unfavorable weather conditions and palm rejuvenation activities.

SIMP booked a gross profit of IDR 3.36 trillion, operating profit of IDR 1.93 trillion and core profit of IDR 1.17 trillion. The net gearing ratio of the SIMP Group on December 31, 2023 improved to 0.16x compared to 0.26x on December 31, 2022.

For the future, SIMP will continue to prioritize capital expenditure, especially on palm rejuvenation activities and important infrastructure, cost control and efficiency improvements, productivity increases, and sustainable operation management.