CPO PRICES INCREASE, NEXT YEAR MAHKOTA GROUP (MGRO) AIMS FOR SALES OF IDR 6 TRILLION
26 November 2020
Crude palm oil producer PT Mahkota Group Tbk. is optimistic that it can record sales of IDR 6 trillion in 2021 in line with the upward trend in CPO prices in the global market.
President Director of Mahkota Group Usli Sarsi said the sales target was almost double compared to this year's sales target of IDR 3.2 trillion. He added, sales will increase rapidly next year because the company has aggressively increased production, one of which is through the acquisition of a CPO factory.
“MGRO will make acquisitions in the form of oil palm land acquisitions and new factories,” Usli said in a public expose event held virtually, Wednesday (11/25/2020).
He revealed, Mahkota Group had prepared funds of around IDR 250 billion to IDR 350 billion for the acquisition. The source of capital expenditure will still be studied further.
On the other hand, the issuer coded MGRO shares will aggressively add new products to boost sales. There are four new products that are planned to be marketed next year.
“The product lines in the company's planning in 2021 will include palm kernel oil (PKO), palm kernel expeller (PKE), sterin, and cooking oil,” Usli said.
As of October 2020, MGRO recorded sales for CPO of 241,000 tons. This number grew 29 percent compared to 2019 of 186,000 tons.
Meanwhile, palm kernel sales reached 58,000 tons, up 16 percent compared to 2019 sales of 50,000 tons.
MGRO believes that next year it can increase export sales by 50 percent The percentage of the market segment in 2020 shows that MGRO's palm product exports only reached 3.3 percent of total product sales.
“Next year we will reorganize the export portion. This is an opportunity to sell our products abroad,” said Mahkota Group Director Fuad Halimoen.
As is known, this issuer still posted a net loss of IDR 37.11 billion from January to September 2020. There are several factors that affect the issuer's losses, namely technical constraints from Malaysia, limited supply of the company's refinery products, and bank interest depreciation.
“There are obstacles from Malaysian technicians. Due to the pandemic, they could not visit our refinery, so we experienced delays,” Usli said.
Even so, Usli is optimistic that in 2021 the performance of the refinery plant will improve. The processed capacity of the refinery plant is estimated at 1500 tons of CPO per day.