SPUR EXPANSION, MAHKOTA GROUP (MGRO) EXPECTS PROFIT OF IDR 180 BILLION
22 January 2021
Plantation company PT Mahkota Group Tbk (MGRO) will expand through the launch of two new products, namely palm kernel oil (PKO) and olein in 2021.
President Director of Mahkota Group Usli Sarsi said the company will also increase the production capacity of crude palm oil (CPO) and its derivative product, Refined, Bleached and Deodorized Palm (RBDPO).
“Increase production capacity to maximum capacity at all factories, add new product lines, namely PKO and olein, and it is possible to expand in the potential upstream sector,” Usli said, Thursday (21/1/2021).
Usli explained that the issuer is aiming for a sales target of IDR 6 trillion in 2021. Meanwhile, the net profit target is 2.5 to three percent of sales or IDR 150 billion to IDR 180 billion.
MGRO's 2021 sales target has almost doubled compared to the 2020 target of IDR 3.2 trillion. This is due to the high price of palm oil in the global market.
Previously, at the virtual Public Expose event held last November, Usli stated that he had prepared a capital expenditure (capex) budget of around IDR 250 to IDR 300 billion. When reconfirmed, Usli stated that the total capex budget could not be confirmed because it was in the process of consolidation.
“The amount of capex is still being consolidated with all business entities,” Usli added.
Meanwhile, until 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.
The total sales and net profit booked by MGRO during 2020 are still uncertain because they are in the audit process.