Astra Agro Lestari

PT Astra Agro Lestari Tbk, plantation unit of diversified conglomerate Astra International, is Indonesia's biggest agribusiness company by value. Astra Agro is engaged in palm oil and rubber plantations as well as industrial activities. Astra Agro and its subsidiaries’ mills have effective production capacities of 1,050 tons of fresh fruit bunches (FFB) per hour, 920 tons of kernel per day, and 300 tons of crude palm oil (CPO) per day.

Profile

Industry Sector Agriculture
Industry Sub Sector Plantation
Established 3 October 1988
Listed 9 December 1997
Listed Company Code AALI
Listed Shares 1,574,745,000
Dividend Yes
Major Shareholders (>5%) Astra International (79.68%)
Key Subsidiaries Pandji Waringin
Sari Lembah Subur
Letawa
Gunung Sejahtera Dua Indah
Karyanusa Ekadaya

Main commodities

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Business Summary

As one of the leading producers of palm oil, Astra Agro Lestari now manages a total plantation area of 281,378 hectare - including both nucleus and plasma - in Sumatra, Kalimantan and Sulawesi with an average tree age of 14 years. Of that total plantation area, 247,487 hectare is labeled as mature plantation. The production of crude palm oil (CPO) accounts for approximately 90 percent of the company's sales revenue. Kernel and its derivatives account for about ten percent of annual sales revenue.


Operational Highlights of Astra Agro Lestari:

       2008      2009      2010      2011      2012      2013
Fresh Fruit Bunches
   3,937.8    4,295.0    4,235.1    4,798.5    5,498.0    5,123.9
Crude Palm Oil
    981.5    1,083.0    1,113.3    1,268.2    1,476.4    1,538.7
Kernel     213.9     232.2     239.4     269.3     323.1     328.1

in thousand tons
Source: Astra Agro Lestari, Annual Report 2013

In 2013, 99.1 percent of Astra Agro's CPO production was sold on the domestic market, the remainder was exported.


Astra Agro Lestari's Financial Highlights:

      2008     2009     2010     2011     2012     2013
Net Revenue    8,161.2    7,424.3    8,843.7  10,772.6   11,564.3   12,675.0
Gross Profit    3,803.4    3,101.8    3,609.3    3,934.9    4,357.5    4,081.9
Net Profit    2,631.0    1,660.6    2,018.8    2,405.6    2,410.3    1,801.4
Total Assets    6,519.8    7,571.4    8,791.8  10,204.5   12,419.8   14,963.2
Total Liabilities
   1,183.2    1,144.8    1,334.5    1,778.3    3,054.4    4,695.3
Earnings per share¹     1,671     1,055     1,281     1,528     1,531     1,144
Dividend per Share¹       505       685       830       995       685  

in billion IDR rupiah, except stated otherwise
¹ in IDR rupiah
Source: Astra Agro Lestari, Annual Report 2013


Future Prospects of the Indonesian Palm Oil Industry

Although international turmoil has resulted in a significant decline of the global palm oil price (and made the government introduce historically low export duties in 2013), the palm oil business in Indonesia is promising - on the long term - due to a number of reasons:

Big profit margins, while the product is simple to produce.
Large and increasing international demand.
Crude palm oil (CPO) production costs in Indonesia are the lowest worldwide.
Higher rates of productivity compared to other edible oil products.
Bio-fuel is expected to increase its significance at the expense of expensive gasoline.

What are matters that hamper development of Indonesia's palm oil industry:

Awareness of the need for more environment-friendly policies.
Land disputes with local communities due to a lack of clarity regarding land ownership.
Legal and regulatory uncertainty.
High logistics cost due to the lack of quality and quantity of infrastructure.

Please visit our Palm Oil in Indonesia section to read more about this topic.


Future Projection Astra Agro Lestari's Financial Highlights:

      2012     2013    2014F    2015F    2016F
Net Revenue   11,564.3   12,675.0   14,487.0   15,684.0   16,789.0
Net Profit    2,410.3    1,801.4    2,706.0    2,958.0    3,143.0
EBITDA    3,956.0    3,574.0    4,495.0    4,924.0    5,258.0
P/E (x)
              16,6      14,4      14,3

in billion IDR rupiah, except stated otherwise
Source: Ciptadana Securities

Contact Details

Jalan Pulo Ayang Raya Blok OR No. 1
Kawasan Industri Pulo Gadung, Jakarta
Phone: +62 21 461 6555
Fax: +62 21 461 6682 | 461 6689
Email: Investor@astra-agro.co.id
www.astra-agro.co.id

Location