OPERATIONAL PERFORMANCE AND ESG SKYROCKETED ANJ'S NET PROFIT BY 18 FOLD

17 Mar 2022

 

Jakarta, 17 Maret 2022 – PT Austindo Nusantara Jaya Tbk (ANJ) has made an encouraging achievement in 2021 by recording a net profit increase of 1.695% year-on-year (YoY) or USD 39.7 million compared to a net profit of USD 2.2 million in 2020.

The increase in net profit led to a rise in EBITDA from USD 34.3 million in 2020 to USD 87.2 million in 2021, while the EBITDA margin increased from 20.9% to 32.7%. The increase in financial performance was supported by a solid operating performance, particularly the increase in CPO sales volume by 11.6% and the average selling price of CPO by 38%. The palm oil business unit contributed 99% of the company's total revenue of USD 264 million, an increase of 63.2% compared to 2020.

According to Lucas Kurniawan, President Director of ANJ, the increase in the company's financial performance was driven by supply and demand factors. The recovering world economy has increased the demand for palm oil and its derivative products. The increase in sales volume was supported by the implementation of sustainable palm oil practices, agronomic innovations, and an increase in production volume, especially from newly mature West Papua estate and plantations in Belitung Island, with an increase of 63 % and 19% respectively.

“The increase in production is the outcome of the replanting strategy on Belitung Island, which we have implemented since 2015, and the development of new land which we are doing responsibly in West Papua. To mitigate climate change, we are also implementing sustainable agronomic innovations such as fertigation, composting, and pollination techniques," said Lucas.

In the sago business unit, revenue increased and reached USD 1.3 million due to increased sales volume. In the renewable energy segment, increased electricity production from the company's biogas power plants contributed USD 577.2 thousand in 2021 revenue, an increase from the previous year of USD 574.2 thousand.

Meanwhile, the vegetable business unit, PT Gading Mas Indonesia Teguh (GMIT), which started exporting frozen edamame to Japan in March 2021, contributed revenue of USD 878.7 thousand in 2021. This value increased by 90.5% compared to the previous year due to higher sales volume and selling price of frozen edamame.

    

Apart from successfully recording an increase in net profit by almost 18 times, another notable achievement was the RSPO and ISPO sustainability certification. Until the end of 2021, all nucleus estates and 70% of plasma estates and independent smallholder partnerships have received RSPO and ISPO certification. ANJ targets all partner plantations to be ISPO certified in 2023 and RSPO in 2025.

At the end of 2021, two of ANJ's subsidiaries, PT Sahabat Mewah dan Makmur (SMM) and PT Austindo Nusantara Jaya Agri (ANJA), won PROPER Emas from the Ministry of Environment and Forestry (KLHK). ANJ has also received recognition from several environmental, social, and governance (ESG) and openness performance assessment institutions at the global level, such as CDP, Sustainability Policy Transparency Toolkit (SPOTT), and Sustainalytics.

The ranking by Sustainalytics, a leading ESG rating company that is part of the Morningstar group, placed ANJ as the first among companies headquartered in Indonesia and ranked third in the world with the lowest ESG risk for plantations out among the world's companies assessed by Sustainalytics. Sustainalytics' rating results reveal that although ANJ faces high ESG risk, ANJ's management successfully manages the risk reliably. SPOTT, a public disclosure platform in terms of the ESG performance of palm oil companies, gave a score of 82.9%, far above the average score from 100 world palm oil companies assessed by SPOTT, which is 42.8%.

In line with the company's vision and mission, ANJ is committed to becoming the leading and most prepared palm oil company in Indonesia in implementing ESG aspects. ANJ's commitment was accomplished through strategic steps as part of ANJ's sustainability journey, which includes the use of organic and environmentally friendly fuels derived from waste, reducing greenhouse gas emissions, and reducing fossil fuels and chemical fertilizers.

"This year, we will continue programs that are in line with ESG aspects to support our future growth strategy, including a replanting program at our Belitung Island plantation and North Sumatra 1 plantation, infrastructure development at our West Papua plantation, and construction of organic fertilizer (compost) factory in our West Kalimantan plantation, as a continuation of the program that we have previously implemented in Belitung Island and North Sumatra 2 plantations," concluded Lucas.

 

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