30 June 2021

Palm oil company, PT Mahkota Group Tbk (MGRO) believes its performance can continue to improve throughout 2021.

As a reminder, MGRO posted an increase in revenue of 105.92% (yoy) to IDR 1.23 trillion in the first quarter of 2021. Unfortunately, at the same time, MGRO had to experience an increase in net loss attributable to owners of the parent entity by 21.69% (yoy) to IDR 20.59 billion.

MGRO Corporate Secretary Elvi said, based on the realization of this performance, his party is still aiming for a total revenue of IDR 6 trillion. Indeed, the increase in revenue will be accompanied by an increase in a number of expenses.

For this reason, MGRO management continues to implement efficient production and marketing strategies.

Elvi also revealed, until May 2021, MGRO had produced 90,278 tons of crude palm oil (CPO) and 89,844 tons of refined bleached deodorized palm oil (RBDPO). MGRO's operational performance is believed to increase along with the upward trend in CPO prices since the beginning of this year.

“We continue to try to produce at full capacity by maximizing the raw material supply chain,” he said, Monday (28/6).

In addition, MGRO is preparing expansion steps to strengthen its business in the upstream sector by acquiring oil palm plantations. However, Elvi said, until now her party has not received a potential oil palm plantation target for acquisition.

In Kontan's notes, MGRO Management prepared a budget of IDR 250 billion - 350 billion to initiate the planned acquisition of the oil palm plantation. However, the certainty of the amount of budget funds is still being discussed further by MGRO internally.

“If execution is to be carried out, the funding can come from various capital market instruments or banks,” Elvi added.

Furthermore, Elvi added, MGRO is also exploring cooperation in utilizing solid or liquid waste from palm oil into methane gas for power generation purposes. However, there is no further explanation regarding the plan.

Referring to previous news, MGRO had signed a sign agreement with a French company to build a power plant with a methane gas source.

Source : https://investasi.kontan.co.id/news/strategi-mahkota-group-mgro-bidik-pendapatan-rp-6-triliun-pada-2021?page=1