ANJ REPORTED INCREASED FFB PRODUCTION IN 1Q2023

02 May 2023

 

Jakarta, May 2, 2023 – PT Austindo Nusantara Jaya Tbk. (ANJ) reported its operational performance for the first quarter of 2023, with fresh fruit bunches (FFB) production reaching 189,662 metric tons, an increase of 8.7% compared to the same period last year when it was 174,424 metric tons. This growth was primarily driven by plantations that underwent replanting, namely the plantations on Belitung Island, North Sumatra I, North Sumatra II, and West Kalimantan.

However, the production of Crude Palm Oil (CPO) and Palm Kernel (PK) experienced a decrease of 0.6% and 2.5%, respectively, with CPO reaching 60,051 metric tons and PK at 11,517 metric tons. Consequently, CPO sales declined by 3.3% to 58,103 metric tons compared to 60,057 in 2022. Amidst a decrease in the average selling price (ASP) of CPO and PK, which was corrected by 27.5% due to higher palm production and lower prices of other vegetable oils, combined with concerns over a possible global economic recession, ANJ reported a decline in revenue and posted an EBITDA of USD 6.6 million in Q1 2023, lower than the USD 23.7 million in Q1 2022, as well as a net loss of USD 3.9 million.

Nopri Pitoy, Finance Director of ANJ, explained that the decrease in CPO and PK production was mainly due to reduced purchases of external FFB at one of ANJ’s estates due to road access restrictions for FFB delivery trucks. However, since April 2023, ANJ has resumed purchases of external FFB at this plantation. Additionally, ANJ’s Southwest Papua plantations experienced an 8.1% decrease in FFB production due to parthenocarpy caused by high rainfall intensity during 2022, which affected fruit formation and consequently impacted the quality of FFB delivered to the mills.

"The fluctuations in CPO prices highlight the importance of increasing plantation productivity to maintain company performance. Therefore, ANJ is implementing a replanting program to balance plant age profile and achieve long-term productivity growth. We are already witnessing increased production from our replanting program in our plantations," explained Nopri.

Amidst the ongoing replanting program, the plantations on Belitung Island recorded a total FFB production of 54,070 metric tons, a 26.3% increase compared to the same period last year, which was 42,797 metric tons. Similarly, the North Sumatra I plantation, which initiated the replanting program in 2018, produced a total of 29,911 metric tons of FFB, a 5.0% increase from the total FFB production in the same period last year of 28,488 metric tons.

Meanwhile, the plantations in Southwest Papua are entering a young mature period, although they have yet to achieve optimal production that can cover the related operational costs and depreciation expenses. Southwest Papua plantation is expected to reach optimal production in the next three years.

ANJ also reports that three cooperative partnership plantations on Belitung Island have received RSPO certification. Consequently, ANJ has achieved 100% RSPO certification for its plasma plantations and corporate partnerships, exceeding the expectations and targets for 2025.

"We will continue to practice sustainable farming and pursue our ESG ambitions, including our target of achieving net-zero emissions by 2030," concluded Nopri.

 

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