04 September 2018

Bisnis.com, JAKARTA-Palm processing company PT Mahkota Group Tbk (MGRO) admitted that it had no difficulty in funding its downstream project worth IDR 330 billion.

President Director of Mahkota Group Usli Sarsi said that the development of downstream industries in the form of the construction of a refinery plant with a capacity of 1,500 tons per day and a kernel crushing plant of 200-400 tons per day in Bengkalis Regency, Riau, could run this month.

The project, which is run through MGRO's grandson, PT Intan Sejati Andalan, is targeted for completion in June 2019. The cost of developing this new factory reached IDR 330 billion.

“For funding, we have no difficulties. There are funds from internal cash, then IPO proceeds. We are currently in the process of applying for bank loans of around IDR 50-100 billion,” he told Bisnis, Monday (3/9).​

In the IPO on July 12, 2018, the company released 703.68 million new shares or equivalent to 20% of the issued and fully paid capital. The exercise price was IDR 225, so the company raised IDR 158.33 billion.

According to Usli, 60% of the funds or around IDR 95 billion were allocated for the construction of a new factory. Meanwhile, the remaining 40% is used as working capital for subsidiaries.

With the refinery plant and kernel crushing plant, the company can produce CPO derivative products such as olein or edible oil and sterin, as raw material for margarine or oleochemicals.

The company also maintains its 2018 revenue and net profit targets of IDR 2 trillion and IDR 50 billion, respectively. The factor driving the performance is the potential increase in CPO production up to 3 times in the second semester of 2018 compared to the previous 6-month period.

As of June 2018, MGRO's revenue reached IDR 836.59 billion, up 10.80% year on year (yoy) from the previous IDR 755.05 billion. Meanwhile, loss before income tax was IDR 18.8 billion, down from IDR 24.79 billion as of June 2017.

Source : http://market.bisnis.com/read/20180903/192/834624/bangun-pabrik-mgro-tak-kesulitan-pendanaan