Sampoerna Agro

PT Sampoerna Agro Tbk is one of Indonesia's leading producers of palm oil and palm kernel. It is a diversified plantation company that is engaged in the production of four main product lines: palm products, palm kernel products, germinated oil palm seed, and non-palm oil products consisting of slab rubber, and sago products.

Sampoerna Agro is part of the Sampoerna Strategic Group, owned by the rich Sampoerna family. This group has businesses in the agri-business, telecommunications and banking sectors.

Profile

Industry Sector Agriculture
Industry Sub Sector Plantation
Established 07 June 1993
Listed 18 June 2007
Listed Company Code SGRO
Listed Shares 1,890,000,000
Dividend Yes
Major Shareholders (>5%) Sampoerna Agri Resources Pte Ltd (67.05%)
Key Subsidiaries PT Binasawit Makmur
PT Lanang Agro Bersatu
PT Pertiwi Lenggara Agromas
PT Sampoerna Bio Fuels
PT Usaha Agro Indonesia
PT Gunung Tua Abadi

Main commodities

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Business Summary

Sampoerna Agro has a total of 108,543 hectares of oil palm plantation in the provinces of South Sumatra and Central and West Kalimantan. It owns six palm oil mills (POM), of which five are located in Sumatra and one in Kalimantan. The POMs in Sumatra have a total capacity to produce 380 tons of fresh fruit bunches (FFB) per hour, whereas the POM in Kalimantan has a capacity to produce 75 tons of FFB per hour. Nearly all of Sampoerna Agro's sales constitute palm products that are sold to the domestic market.

         2008        2009        2010        2011
Sales    2,288,143    1,815,557    2,311,749    3,142,379
Gross Profit
    773,790     599,427     842,631    1,060,813
EBITDA     697,038     548,214     756,717     875,953
Total Assets    2,156,164    2,261,798    2,875,847    3,411,026
Total Liabilities     577,988     474,967     716,582     911,515
Earnings per share¹        236        151        239        286

in million Rupiah (IDR)
¹ in Rupiah (IDR)
Source: Sampoerna Agro, Annual Report 2011


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.

Contact Details

Sampoerna Strategic Square, North Tower, 28th Floor
Jalan Jenderal Sudirman Kav. 45, Jakarta 12930
Phone: +62 21 577 1711
Fax: +62 21 577 1712
Email: eris.ariaman@sampoernaagro.com
www.sampoernaagro.com

Location