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 Sampoerna family. This group owns large stakes in the country's 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 Binasawit Makmur
Lanang Agro Bersatu
Pertiwi Lenggara Agromas
Sampoerna Bio Fuels
Usaha Agro Indonesia
Gunung Tua Abadi

Main commodities

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Business Summary

Sampoerna Agro is an integrated and diversified agribusiness company involved in the production of four major commodities: palm oil, palm kernel, sago and rubber. Crude palm oil (CPO) and palm kernel account for over 90 percent of the company's total consolidated revenue.

At start-2014, the company operated a total of 120,225 hectares of oil palm estates, 2,810 hectares of rubber estates, and 10,351 hectares of sago estates, mostly located on the islands of Sumatra and Kalimantan. Sampoerna Agro owns six palm oil mills (POM), five of which are located on Sumatra and one on Kalimantan. The POMs in Sumatra have a total production capacity of 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. The company also owns a kernel crushing plant (KCP), located in South Sumatra, with a total installed production capacity of 150 tons of palm kernel per day and a sago processing mill, located in Riau (Sumatra), with a production capacity of 100 tons of starch output per day.

Sampoerna Agro's palm estates in Sumatra cover an area of over 85,000 hectares, most of which comprise producing oil palms with an average age of around 13 years. Approximately 48 percent of the areas constitute nucleus estates while the remaining areas involve smallholder estates known also as plasma estates.

In South Sumatra, the company operates a productive rubber estate of over 200-hectares, with access to a further additional landbank of 100,000 hectares in West Kalimantan which is planned to be developed (mostly) into rubber estates.

Roughly 90 percent of Sampoerna Agro's CPO production is sold on the domestic market, the remainder is exported (mostly to Singapore).


Sampoerna Agro's Production Highlights:

     2012    2013
Fresh Fruit Bunches
in million tons
   1.72    1.36
Crude Palm Oil
in thousand tons
    351     271
Palm Kernel
in thousand tons
   86.3    70.8
Sago
in thousand tons
    2.3     5.0
Rubber
in tons
    474     741

Source: Sampoerna Agro, Annual Report 2013


Sampoerna Agro's Financial Highlights:

      2008     2009     2010     2011     2012     2013
Sales   2,288.1   1,815.6   2,311.7   3,142.4   2,986.2   2,560.7
Gross Profit
    773.9     599.4     842.6   1,060.8     793.0     498.1
Operational Income       417.1     649.4     748.8     486.6     236.2
Net Profit       281.8     451.7     540.9     329.2     119.1
EBITDA     697.0     548.2     756.7     876.0     670.3     440.4
Total Assets   2,156.2   2,261.8   2,875.8   3,411.0   4,137.7   4,512.7
Total Liabilities     578.0     475.0     716.6     911.5   1,470.8   1,814.0
Earnings per Share¹      236      151      239      286      174       63
Dividend per Share¹      147       90       45      108       87       45

in billion IDR rupiah unless stated otherwise
¹ in IDR rupiah
Source: Sampoerna Agro, 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 Sampoerna Agro's Financial Highlights:

      2012     2013     2014F     2015F     2016F
Sales   2,986.2   2,560.7    3,417.0    3,722.0    4,003.0
Net Profit     329.2     119.1     332.4     416.7     355.3
EBITDA     670.3     440.4     826.1     985.0     931.2
P/E Ratio (x)
    13.49     45.49     13.97     10.97      13.0

in billion IDR rupiah unless stated otherwise
Source: CIMB Securities

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