Financial Statements


Profit and Loss Report

Net Revenue

During the same period, the Company’s average CPO sales price declined by 15.8% from Rp 8,282 per kilogram to Rp 6,971 per kilogram. This decline in the average CPO sales price was influenced by a decline in prices of a number of commodities in the global markets, including CPO prices. Although the Company was able to strongly maintain its operational performance, the dive in the average CPO prices has significantly affected our financial performance in 2015.


Over the period to in 2015 the Company’s books showed a net revenue of Rp 13.06 trillion, equivalent to a decline of 19.9% compared to the same period in 2014 of Rp 16.31 trillion. Apart from the declining average CPO prices, the drop in our net revenue was also affected by a decrease in the CPO sales volume. The Company’s CPO sales volume fell by 24.2% from 1.37 million tons to only 1.04 million tons.


The decrease in CPO sales volume was mainly due to a change in allocating CPO production to be re-processed into palm oil derivative products such as RBDPO, Olein, Stearin and PFAD. This caused a significant rise in sales volume of Olein, which in 2015, showed an increase of 61.6% from 255 thousand tons to 412 thousand tons.


Gross Profit

The Company’s gross profit decreased by 37.8% from Rp 4.95 trillion in 2014 to Rp 3.08 trillion in 2015. This decline, was foremost influenced by the decrease in the average sales price of CPO and its derivatives, together with a decrease in sales volume. This inevitably affected the Company gross profit margin, which declined from 30.4% in 2014 to 23.6% in 2015.


Profit Attributable to Owners of the Company

During the fiscal year ending December 31, 2015 the amount of profit attributable to owners of the Company declined by 75.3% from Rp 2.50 trillion in 2014 to Rp 619.11 billion in 2015. This was mostly affected by the decrease in gross profit, increase in loan interest expense and the strengthening of the US currency causing exchange rate losses because of loans in foreign currency.


Other Comprehensive Income

In 2015 the Company recorded cost of remeasurement from employee benefit obligation in the amount of Rp 6.28 billion against Rp 36.63 billion in 2014. Other comprehensive income is the account that records profit or losses related to a change in assumption regarding the calculation of employee benefit obligation.


Total Comprehensive Income

The Company recorded a total comprehensive income of Rp 689 billion in 2015 representing a decrease of 73.3% compared to 2014 which stood at Rp 2.58 trillion.



Financial Position

Assets

The total Company assets recorded at the end of the financial year ending December 31, 2015 was Rp 21.51 trillion, showing an increase of 15.9% compared to the total assets of Rp 18.56 trillion recorded in the previous financial year. This was due to the increase in the current assets group from Rp 2.40 trillion in 2014 to Rp 2.81 trillion in 2015. An increase was also recorded in the non-current assets group which showed a rise from Rp 16.16 trillion in 2014 to Rp 18.70 trillion in 2015. The increase in assets was mainly due to an increase in plantation assets, fixed assets, inventories and receivables in joint venture.


Current Assets

Current assets increased by 17.1% from Rp 2.40 trillion to Rp 2.81 trillion. Some aspects affecting this increase were among others an increase in inventory and prepaid taxes.


Non-Current Assets

At the end of 2015, the Company recorded a value of non-current assets of Rp 18.70 trillion representing an increase of 15.7% compared to Rp 16.16 trillion in 2014. The increase in non-current assets is mainly due to an increase in fixed assets, plantation plants and receivables in joint venture.


Liabilities

One of the sources of funding in the framework of expanding the Company’s scale of business was through third party loans. The Company recorded an increase in total liabilities of 45.9% from Rp 6.72 trillion at the end of 2014 to Rp 9.81 trillion at the end of 2015. These liabilities are comprised of current and non-current liabilities. The increase in liabilities resulted mostly from a rise in long term liabilities, which by the end of 2015 reached Rp 6.29 trillion or increased by 140.6% from the amount of long term liabilities of Rp 2.61 trillion in 2014.


Current Liabilities

The Company has current liabilities amounting to Rp 3.52 trillion by the end of 2015 or a decrease of 14.3% compared to 2014. The decrease of current liabilities mostly due to decrease in bank loans and tax payables.


Non-Current Liabilities

Concurrently, the total amount of the Company’s non-current liabilities by the end of 2015 stood at Rp 6.29 trillion or increased by 140.6% compared to non-current liabilities at the end of 2014 which stood at Rp 2.61 trillion. The increase in non-current liabilities was caused by an increase in long term bank loans from Rp 2.13 trillion in 2014 to Rp 5.71 trillion in 2015, representing an increase of 168.3%.


Equity

At the end of 2015, the Company’s equity went down 1.1% to Rp 11.70 trillion from Rp 11.83 trillion at the end of 2014. This was caused by the decline in unappropriated retained earnings balance by 1.3%, from Rp 10.39 trillion in 2014 to Rp 10.26 trillion over the same period in 2015, primarily due to the payment of cash dividend in 2015 amounting Rp 743 billion.


Cash Flow

The Company balance sheet recorded a cash and cash equivalent position of Rp 294 billion at the end of 2015, representing a decrease of 51.8% compared to the position of Rp 611 billion at the end of 2014. This was influenced by the decline in cash flow related to operational activities.


Debts and Capital Structure

An analysis on the Company’s fundamentals by calculating the gearing ratio, where net loans are compared against the Company’s net worth, revealed that in 2015 the number was 64% against 32% in 2014. With the net tangible assets owned, the Company will be able to meet all of its liabilities, both current and non-current liabilities.


In managing the capital, the Company will also continue to maximize the benefits for all shareholders and other stakeholders. The Company will continuously examine any policies related to capital and ensure a sound capital structure able to provide optimum returns to its shareholders.


Dividend Policy and Cash Dividend per Share

During the Annual General Meeting of Shareholders (AGM) which took place on April 14, 2015, the shareholders approved disbursement of final dividends over the profits of financial year 2014 of Rp 1.13 trillion or Rp 716 per share, thereby taking into account the interim dividends of Rp 244 per share, paid to the shareholders.


Information on Investment

In 2015 the Company acquired 50% of equity shares in a palm oil refinery owned by our partner, KL-Kepong Plantation Holdings Sdn, Bhd.


The Company also continued implementing its mechanization program, building infrastructure and replanting areas that have become less productive.


Accounting Policy Change

The implementation of new statement of accounting standards

The accounting standards which have been published and relevant to the Groups’ operation, as follows:


Effective in 2015:


- PSAK No. 1 (revised 2013)   : Presentation of financial statements

- PSAK No. 4 (revised 2013)   : Separate financial statements

- PSAK No. 15 (revised 2013) : Investment in associates and joint ventures

- PSAK No. 24 (revised 2013) : Employee benefits

- PSAK No. 46 (revised 2014) : Income taxes

- PSAK No. 48 (revised 2014) : Impairment of assets

- PSAK No. 50 (revised 2014) : Financial instruments: presentation

- PSAK No. 55 (revised 2014) : Financial instruments: recognition and

                                                  measurement

- PSAK No. 60 (revised 2014) : Financial instruments: disclosures

- PSAK No. 65                         : Consolidated financial statements

- PSAK No. 66                         : Joint arrangements

- PSAK No. 67                         : Disclosure of interests in other entities

- PSAK No. 68                         : Fair value measurement


Not effective for the year begin as at or after 1 January 2015 :


- PSAK No. 1 : Presentation of financial statements

- PSAK No. 4 : Separate financial statements

- PSAK No. 5 : Operating segments

- PSAK No. 7 : Related party disclosures

- PSAK No. 15 : Investment in associates and joint ventures

- PSAK No. 16 : Fixed assets

- PSAK No. 19 : Intangible assets

- PSAK No. 22 : Business combination

- PSAK No. 24 : Employee benefits

- PSAK No. 25 : Accounting policies, changes in accounting estimates and

                         errors

- PSAK No. 65 : Consolidated financial statements

- PSAK No. 66 : Joint arrangements

- PSAK No. 67 : Disclosure of interests in other entities

- PSAK No. 68 : Fair value measurement

- PSAK No. 69 : Agriculture

- ISAK No. 30 : Levies


The Company is still evaluating the impact which may arise out of the issuance of the financial accounting standards









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1 Financial Statement 2016
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3 Financial Statement 2014
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7 Financial Statement 2010