This showed an increase of Rp 5.73 trillion or about 500% compared to the company's profit in 2020, despite PTPN Group having suffered a loss of Rp 1.14 trillion that year. The achievement of consolidated net profit was generated from sales of Rp 53.57 trillion or 32% above last year's profit. Meanwhile, EBITDA was recorded at Rp 14.18 trillion, or an increase of 206.69% compared to last year, or 124.26% above the budget in 2021. The improvement in the company's performance was the result of the success of the company’s transformation program carried out by the company during the past two years.
President Director of Perkebunan Nusantara PTPN III (Persero) Mohammad Abdul Ghani stated, "The transformation efforts of PTPN have been successful, with a positive impact on PTPN Group's financial performance in 2021. The increase in the company's net profit was supported by an increase in the company's revenue, from Rp 39.39 trillion in 2020 to Rp 53.57 trillion or 36 percent above last year's revenue. We will continue to spur business revenue growth, through improvement of company’s production and productivity, as well as through operational optimization both in upstream and downstream fields. In sugarcane and sugar commodities, for example, we will focus to improve productivity of sugarcane land area and to revitalize sugar mills through our subsidiary company, PT Sinergi Gula Nusantara (SGN)."
Organizational and debt restructuring, the EBITDA transformation program and the digital transformation program were the main factors in the successful transformation of PTPN Group. Organizational restructuring is carried out by changing the company from a strategic holding to an operating holding. In addition, PTPN Holding implements digital transformation so that it can elevate the level of efficiency and effectiveness to its optimum. One of the key transformation programs is the debt restructuring program, where PTPN Holding improved financial performance to achieve a sustainable, comprehensive and transparent business. The management of PTPN Group proved its capacity to improve the company's financial health. One, by lowering short-term liabilities through debt restructuring programs to the banks. In 2020, total short-term liabilities amounted to Rp 38.19 trillion; in 2021 the amount decreased to Rp 20.03 trillion. The decrease of the short-term liabilities enabled the management to expand business, improve cash flow and provide space for companies to increase their capital expenditures.
"The EBITDA Transformation Program, initiated at the beginning of the second quarter of 2021, also contributed significantly to the performance achievements of the company in 2021. Strategic initiatives in the form of EBITDA transformation are carried out through the implementation of these programs: Revenue Enhancement, Organizational Excellence, Zero Based Budgeting, Logistic Optimization, Procurement Excellence, Operations Control Tower, Cash Office, Management Review Cycle and Strategic Transformation Office Program. The result is increased revenue as well as cost and operational efficiency after implementing fundamental improvements in the business continuity, in order to become a champion," Ghani said.
The implementation of operational excellence has consistently had an impact on the improvement of operational performance, as reflected in the increase of production of major commodities, compared to the previous year. In 2021, the total production of fresh fruit bunches (FFB) or Tandan Buah Segar (TBS) of palm oil amounted to 12.47 million tons, or an increase of 13.36% as compared to the same period in 2020. The increase in FFB production was followed by an increase of Crude Palm Oil (CPO) production of 2.68 million tons, or 12.57 percent compared to 2020. In addition, FFB and CPO productivity also increased to 21.07 tons/ha and 4.83 tons/ha respectively, or at a rate of 7.18 and 7.51 percent from the 2020 figures. The Basic Production Cost (Harga Pokok Penjualan - HPP) of palm oil commodities decreased from Rp 4,161/kg to Rp 3,956.
PTPN’s average CPO selling price in 2021, Rp 11,293/kg, was already a significant increase from the previous year, which only averaged Rp 8,521/kg. For rubber commodities, the total rubber production in 2021 was 171 thousand tons or an increase of 7.21% compared to 2020. Meanwhile, sugar production in 2021 amounted to 768.6 thousand tons or an increase of 9.42 percent from the previous year.
"Our transformation program has been capable of accelerating improvement of production and productivity of PTPN's main commodities, which effected the improvement of the company’s financial performance. This also resulted from an increase of the average selling price of PTPN Group commodities, especially for palm oil commodities," said Ghani.
Management appreciates the hard work and dedication of all PTPN Group employees who have carried out human resource transformation and adopted the company's effective and efficient operational principles. The performance of the employee is the backbone of the company's profit growth, such that the company was able to reap a profit of Rp 4.64 trillion. "Without strong commitment and cooperation spirit from management and employees and the full support of key stakeholders, PTPN Group would not have been able to carry out this transformation and achieve a profit of IDR 4.64 trillion," Abdul Ghani said.
"We will continue to transform and strive to improve performance through various strategic initiatives and other corporate actions, such as listing on the stock exchange at the end of this year. PTPN Group continues to move forward and strives to realize the vision of ‘The New Pride of Indonesia’. In 2021, PTPN Group was successfully ranked as one of 10 BUMN with the largest revenue and profit: an incredible leap of achievement. The audit of the company's financial statements proves the reliability of the strategy and business direction of Holding Perkebunan Nusantara. Armed with its performance in 2021, PTPN Group is determined to restore Indonesia's position as the main supplier of plantation commodities in the international market and become the new pride of Indonesia. We are optimistic that PTPN will be even better next year," Ghani said
Reporter: PR Wire
Editor: PR Wire
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