Up 3.7%, Cisadane Sawit Raya (CSRA) Records Revenue of IDR 190.9 Billion in Q1-2024

FINANCIAL REPORT - JAKARTA. In the first quarter of this year, PT Cisadane Sawit Raya Tbk (CSRA) successfully recorded revenues of IDR 190.96 billion, a 3.7% increase compared to the same period last year, which was valued at IDR 184.15 billion.

The increase in sales primarily came from the effects of TBS sales amounting to IDR 43.32 billion, CPO sales of around IDR 131.75 billion, and Kernel sales of about IDR 15.32 billion.

Meanwhile, from the cost side, CSRA recorded an increase in the cost of goods sold and revenues by 11.9% with a value of IDR 107 billion compared to the same quarter last year, which was valued at IDR 95.87 billion.

Operating expenses also increased by 27% with a value of IDR 52.82 billion compared to the same quarter last year, which was valued at IDR 41.58 billion.

On the other hand, gross profit reached IDR 83.65 billion, resulting in a gross margin of 43.8%. This performance was achieved through increased productivity and the execution of a well-planned strategy, which helped offset the average selling price decrease compared to the same period last year.

With the rise in several expenses and the influence of the average selling price decrease, CSRA's net profit for the period or net income slightly decreased by 5.6% to IDR 22.23 billion compared to the same period last year, which was valued at IDR 23.56 billion.

Seman Sendjaja, CSRA's Director of Finance and Strategic Development, remains optimistic as 2024 poses challenges for the Indonesian palm oil industry, driven by several key factors.

These factors include increased production costs related to wages, fertilizer prices, logistics, and the global demand for continuously increasing sustainability business requirements.

In addition, the implementation of the Job Creation Law, legal cases involving the Company's operational areas, and the enforcement of the European Union's Deforestation-Free Product Regulation (EUDR) have added pressure to the palm oil industry.

“In addition, several limiting factors have affected palm oil production, especially the El Nino phenomenon in 2023, low rainfall, a significant increase in fertilizer prices, and weather disturbances affecting productivity,” he revealed in a written statement received by Kontan on Thursday (2/5).

These factors, he added, have collectively slowed down the company's productivity.

However, according to him, CSRA has successfully delivered solid performance supported by robust profitability, good margins, and confirmation that the Company is on track to achieve its targets in 2024 despite highly uncertain weather conditions.

“These results demonstrate the Company's ability to grow in a challenging environment and also provide a strong foundation not only for the remainder of 2024 but also for the long term. By the end of March 2024, all regions contributed to growth, although momentum sometimes weakened at the beginning of the year due to weather and lower average selling prices,” he said.

Seman also expressed his satisfaction with the Company's good performance in the first quarter, stating that CSRA once again affirmed the importance of its production strategy, which is a key factor not only in the Company's operations but also in the areas where the Company operates, where the Company holds a systematically important position.

“Our strong financial foundation puts us in a position to continue investing in our company's strategic development, even in a challenging economic environment, and we will continue to strive to improve our operational and financial performance, as well as enhance our sustainability practices so that we can achieve our goal of becoming a leading national agribusiness company," added Seman.

“CSRA's value creation puts us in a strong position to achieve our targets and generate reliable and sustainable returns for shareholders. Looking ahead, 2024 will be a decisive year to execute our strategic goals and accelerate progress across the business," he concluded.