SUCCESSFULLY SUPPRESSING FIRST SEMESTER LOSSES, MAHKOTA GROUP BELIEVES THAT 2024 PERFORMANCE WILL IMPROVE
21 August 2024
PT Mahkota Group Tbk (MGRO) managed to reduce its net loss in the first semester of 2024 to IDR 57.3 billion or much lower than the same period the previous year which reached IDR 184.6 billion.
This was achieved due to management's success in reducing costs, so that even though revenue decreased compared to the first semester of last year from IDR 2.64 trillion to IDR 1.96 trillion, the company's loss realization decreased sharply.
In MGRO's unaudited financial statements, one of the reasons was the decrease in operating expenses from IDR 171.3 billion to IDR 101.44 billion. The management of this Medan-based palm oil agro-industry company is optimistic that its performance until the end of the year will continue to improve compared to last year's realization which suffered a net loss of IDR 152.2 billion.
MGRO targets revenue until the end of 2024 to reach IDR 8 trillion so that it can improve the company's performance from a loss position in 2023 to a profit this year with a projected net profit of IDR 50 billion.
For this reason, according to Usli Sarsi, President Director of Mahkota Group, improved performance in the second semester of this year is expected to be achieved from the operation of the 2nd production line and biogas energy management in semester 2 of the 80-hectare Integrated Sustainable Agro Industry project at the Duri 13 factory site, Solapan, Bengkalis Regency, Riau.
“Improved performance of Mahkota Group will be achieved through the integrated factory in Riau because it can support significant production growth and efficient and effective operational integration so that positive performance can be achieved,” said Usli Sarsi in Medan, Monday (19/8).
He added that the 2nd line production line in Riau boosted production capacity to 2 x 1,800 tons per hour accompanied by the support of quality production raw materials. “Analysis of product sales prices and cost of production is still carried out in order to maximize benefits. The company strives to achieve the revenue targets set by shareholders and management. Also, we are doing various ways so that the level of operational cost efficiency is getting better compared to the previous year's period.”
In the midst of confidence in improving performance supported by the operation of the Integrated Sustainable Agro Industry project in Riau, said Fuad Halimoen, Director of Operations of Mahkota Group, there are challenges in the field that the desired production capacity is not yet fully operational because the construction is still in the completion stage. “For this reason, management plans to revise production and revenue targets to adjust to current market and company conditions. But we are confident that performance remains strong to generate profits this year,” he added.
The Duri 13 Integrated Agroindustry Area currently processes around 1,000 tons of fresh fruit bunches (FFB) per day, from which the final processing produces solid waste and liquid waste. Solid waste management in the area is carried out by Mahkota by processing it back into FOF fertilizer products and fuel as a substitute for shells. While liquid waste management will be built a biogas plant to capture methane gas produced by waste from its palm oil processing plant. The gas, which is categorized as hazardous and toxic material or B3, will be processed in a process tank for purification. New renewable energy (EBT) in the form of biogas produced from the purification process is then used as fuel for their boiler engine.
Fuad Halimoen said that the use of additional energy from biogas has the potential to save the company's expenditure on the purchase of fossil fuels, which has been costing around IDR 5-6 billion per month.
Even efforts to reduce emissions from the development of environmentally friendly projects in the Sustainable and Integrated Agroindustry Area are expected by Mahkota to produce carbon credits that can be traded to companies in need. The potential for reducing emissions from the area is estimated to be around 95 thousand more Metric Tons of CO2.