PROJECTED 2020 PERFORMANCE, MAHKOTA GROUP (MGRO) REVISED PROFIT TARGET 30 PERCENT
25 June 2020
PT Mahkota Group Tbk. cut its profit target this year by 30 percent, in line with global CPO demand which fell due to the impact of the Covid-19 pandemic.
President Director of Mahkota Group Usli Sarsi said CPO export demand in the first quarter of 2020 was still normal. However, in the second quarter of 2020, demand began to decline by 10 percent - 20 percent.
He estimates that demand will begin to strengthen in the third quarter of 2020, since the implementation of the new normal. Usli added that recently the company conducted the first export of refined, bleached, and deodorized palm oil (RBDPO) products to Tanjung Langsat, Malaysia as much as 3,500 tons.
“We really have to be realistic about what is happening. There is a 30 percent downward revision, both revenue and profit,” he said in a live Instagram discussion held by IDX North Sumatra, Thursday (6/25/2020).
Usli detailed that the company cut its net profit target by 30 percent, from IDR 132 billion to around IDR 90 billion. The company, which has a palm oil processing plant located in North Sumatra, hopes that the Covid-19 pandemic can end soon so that the impact on performance is not too great.
To prevent the spread of Covid-19, the issuer coded MGRO shares, implemented physical distancing for their plantations and factories. Guidelines for working in the office during the new normal have also been implemented, with 30 percent of employees working from home and 70 percent returning to the office.
To deal with the impact of the Covid-19 pandemic, Usli said that the company has made many breakthroughs and reformulated its business plan. The company will move in several fields, such as processing palm oil liquid waste into power plant fuel.
“We have signed with a French company to build a gas power plant. In the future, the power plant will contribute a good performance,” he added.