GOING TO OPERATE A NEW FACTORY, MAHKOTA GROUP (MGRO) AIMS FOR IDR 5 TRILLION IN REVENUE
06 February 2019
KONTAN.CO.ID - JAKARTA. PT Mahkota Group Tbk ( MGRO ) is focusing on developing its business in the downstream sector. MGRO will operate a refinery plant through its subsidiary PT Intan Sejati Andalan and a kernel crushing plant in Dumai in June this year.
This plant will produce cooking oil with a production capacity of 1,500 tons per day, while the kernel crushing plant will produce palm kernel oil of 400 tons per day.
“We are preparing a new refinery plant that will be completed this year, as well as the addition of several storage tanks in one of our subsidiaries,” said President Director of Mahkota Group, Usli Sarsi.
Through its subsidiary PT Dumai Pracipta Abadi, they will add a stockpile tank of 20,000 metric tons, currently they have a stockpile tank with a capacity of 76,000 tons.
In order to launch the business focus, namely downstream by building a refinery plant and adding stockpile tanks, it has prepared a capital expenditure of IDR 200 billion. “Funds are obtained from the IPO proceeds and partly from bank loans,” he added.
In Kontan.co.id's records, to build the factory they need funds of IDR 330 billion, of which funds from IPO proceeds amounted to 90 billion, IDR 120 billion from internal cash, and IDR 120 billion from bank loans.
With the operation of the factory, MGRO is aiming for revenue of Rp 5 trillion, up around Rp 150% with a net profit of IDR 123 billion. Usli revealed, throughout last year they managed to get IDR 2 trillion in revenue. “The net profit is still in the audit process,” Usli explained.
Based on MGRO's financial statements in the third quarter of 2018, they pocketed revenue of IDR 1.46 trillion, up 19% over the same period in 2017 of IDR 1.23 trillion.
Their revenue from CPO sales amounted to IDR 1.1trillion, until September 2018 they managed to book a profit of IDR 45.41 billion.
Reporter : Ika Puspitasari
Editor : Tendi