REPUBLIKA.CO.ID, JAKARTA -- PT Bakrie Sumatra Plantations (UNSP) Tbk reported a 27 percent increase to Rp2.637 trillion in sales year-on-year in 2014.
Sales grew strongly despite a sharp fall in the selling prices of crude palm oil (CPO) and rubber, its main products.
"The increase shows that our business fundamental is strong, company's director Andi W. Setianto said in a statement here on Thursday.
The financial report of the company showed that the plantation company recorded a significant increase in its operating profit and gross profit in 2014.
Andi said the company is set to expand and improvement in performance has been shown since early 2014.
Its gross profit surged 24 percent from Rp591 billion in 2013 to Rp731 billion in 2014 and its operating profit increased even higher by 46 percent from Rp213 billion to Rp312 billion.
He said the company took a business strategy by seeking to boost its production of palm oil and rubber when the prices of the two commodities are still in a low level .
The prices of CPO has declined in 2014 to as low as US$620 per ton FOB Malaysia down from US$720 per ton in 2013 and the peak price of US$1,200 per tons early 2011.
Similarly the price of natural rubber shrank to a lowest level of US$1.6 per kg from US$2.5 per kg in 2013. Rubber peak price was US$6.2 per kg in February 2011.
"In short term we succeeded in optimizing the production capacity of our processing factories with an increase in purchases of palm oil and rubber from farmers," Andi said.
He said the company would continue to improve its productivity and sustainability of its of capital structure as reflected by its health debt ratio.
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