The outbreak of Covid-19 throughout the world, especially Indonesia, has also affected various sectors, including the economic sector. In early April 2020, the government implemented Large-Scale Social Restrictions (PSBB) in several regions in Indonesia as an effort to tackle Covid-19 in Indonesia. The implementation of PSBB also affects companies’ performance in Indonesia, including SAMF, which is engaged in producing and distributing NPK fertilizers. The distribution process of fertilizers to customer plantation locations also experienced obstacles. However, along with the easing of the PSBB, the fertilizer distribution process has improved.
In addition to the PSBB conditions, the CPO price trend also affected the SAMF performance in early 2020 because the CPO price trend significantly affected NPK fertilizer demand at SAMF. The decline in CPO prices had occurred in the international market in early 2020. However, the CPO price began to increase in May 2020, so that the demand for fertilizers also rose again.
In this challenging period for the Indonesian economy throughout 2020, SAMF is grateful that SAMF’s performance in 2020 is still better than its performance in 2019. Despite experiencing severe obstacles in the first quarter to the second quarter of 2020, starting the third quarter of 2020, SAMF’s sales have improved. So that at the end of the 2020 financial year, the SAMF recorded higher sales and net profit figures that exceeded the 2019 figures.
SAMF managed to record sales per December 2020 of around IDR1,409 billion or an increase by 10% compared to sales in December 2019 of around IDR1,283 billion. SAMF also recorded a net profit in 2020 around IDR118 billion or an increase of 36% compared to the net profit in December 2019 of around IDR87 billion. SAMF’s net profit margin also increased, from 6.77% in 2019 to 8.37% in 2020.
“We have taken several steps to maintain the Company’s business continuity in these conditions, namely by being more conservative and always considering risk management aspects.” Said Ir. Yahya Taufik, President Director of PT Saraswanti Anugerah Makmur Tbk.
Furthermore, Ir. Yahya Taufik explained that the Company had other strategies, such as being careful in executing various plans and programs, strengthening its financial position, mitigating risks, and increasing efficiency and effectiveness.
“We are optimistic that the Company’s performance in 2021 will continue to improve, accompanied by the Covid-19 vaccination and the ongoing new normal culture. This can be seen from the demand for fertilizer, which has increased significantly at the beginning of 2021.” Said Ir. Yahya Taufik.
In 2021, SAMF plans to add 1 production line at the Mojosari Factory which is estimated to operate in the fourth quarter of 2021, so that SAMF’s production capacity will increase from 600,000 tons/year to 680,000 tons/year.
For more information:
PT Saraswanti Anugerah Makmur Tbk.
corsec@saraswanti.com
investor.relation@saraswanti.com
