26 December 2018

PT Mahkota Group Tbk (MGRO) is preparing a number of strategies to maintain positive performance amid weakening world crude plam oil (CPO) prices. The company is optimistic that the revenue target of IDR 2 trillion and profit of IDR 50 billion in 2018 will be achieved.

Usli Sarsi, President Director of MGRO, revealed that management is maintaining the smooth production of palm oil mills, production quality and strengthening the CPO transportation fleet to storage tanks at the port.

In addition, the company is also strengthening its CPO stockpile in storage tanks. This CPO stock will be used to supply the cooking oil plant that will be operational next year.

“Our CPO and Fresh Fruit Bunch production until November has reached 90% of the target. We are optimistic that all targets in 2018 will be achieved. In the first 6 months of next year we will focus on completing the construction of the cooking oil and palm kernel oil factories,” Usli said.

Currently, the progress of the factory construction has reached 25%. In July 2019 the entire project is targeted to be completed, so that in August 2019 it will be operational to produce 1,500 tons/day of cooking oil and 400 tons/day of palm kernel oil.

The existence of a cooking oil and palm kernel oil factory will have a direct impact on increasing MGRO's sales and net profit in 2019. The company targets revenue of IDR 5 trillion and net profit of IDR 123 billion in 2019.

Throughout this year since making an initial public offering at IDR 225 / share, MGRO's stock performance has been appreciated by the market by achieving growth of 269% or at a price of IDR 830 / share. (Adv)

Source : Harian Bisnis Indonesia Terbit 26 Desember 2018