20 November 2019

KONTAN.CO.ID - JAKARTA. Crude palm oil (CPO) producer PT Mahkota Group Tbk (MGRO), through its subsidiary, PT Berlian Inti Mekar, officially acquired a palm oil mill owned by PT Mahkota Andalan Sawit as of November 8. The purchase value of the plant assets located in South Sumatra reached IDR 120 billion.

MGRO Corporate Secretary Elvi said, this acquisition will have a positive impact on MGRO, both in terms of operations and finance. “With the capacity of processing fresh fruit bunches (FFB) per hour and CPO / PK production which is relatively the same as our other factories, of course the amount of revenue and profit consolidated in MGRO will also increase,” Elvi told KONTAN, yesterday.

The acquisition of this plant is part of MGRO's business plan to increase product downstreaming. This palm oil mill, which has a production capacity of up to 45 tons of FFB per hour, can increase the supply of CPO to support the refinery plant that MGRO is developing in Dumai, Riau.

This refinery plant will produce CPO derivative products, such as olein (cooking oil) and strearin for margarine raw materials (oleochemicals), with a cooking oil production capacity of up to 1,500 tons per day.
 
Until the end of 2019, MGRO targets revenue to increase 183% on an annual basis to IDR 5.66 trillion. In 2018, MGRO recorded revenue of IDR 2 trillion, up 13.6% year on year (yoy). MGRO's aggressive target this year is supported by the contribution of refinery sales which reached 40% of revenue.

As of September 2019, MGRO's revenue was IDR 1.37 trillion, down 6.8% on an annual basis. In 2019, MGRO will also boost its CPO production target to 203,308 tons, up 4.95% from the 2018 target of 193,715 tons. Even so, the realization of 2018 was higher than the target, which was 219,149 tons.

Next year, MGRO targets double-digit growth in revenue and net profit. “The company expects an additional approximately 12.5% for consolidation to MGRO's revenue and profit in 2020,” Elvi said on Friday (11/15).

Monday (18/11), MGRO's share price closed up 1.61% at IDR 945 per share.

Source : https://insight.kontan.co.id/news/kinerja-mgro-naik-dua-digit-usai-akuisisi-pabrik