JAKARTADAILY.ID – PT Astra Agro Lestari Tbk (AALI), a listed palm oil producer and subsidiary of PT Astra International Tbk, witnessed a significant drop in performance during the first quarter of 2023, with the company's net income declining by 53.51 percent.
According to AALI's financial report for the first quarter of 2023, the company's net profit reached Rp 4.76 trillion, reflecting a decrease of 27.66 percent compared to the same period last year when it stood at Rp 6.48 trillion.
All of AALI's business segments experienced a decline in the first quarter of 2023. Revenue from crude palm oil and its derivatives amounted to Rp 4.35 trillion, while palm kernel and its derivatives contributed Rp 399.58 billion. Other revenues were recorded at Rp 4.30 billion.
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Cost of revenue also decreased by 23.83 percent to Rp 4.25 trillion, resulting in a gross profit of Rp 509.87 billion, representing a 48.72% decrease compared to the previous year's figure of Rp 994.36 billion.
Although AALI saw improvements in certain financial statement items such as net proceeds from joint ventures (Rp 38.86 billion) and other net proceeds (Rp 152.30 billion), the company experienced a 58.20% increase in selling expenses, reaching Rp 146.18 billion.
Additionally, AALI incurred a loss of Rp 3.40 billion due to exchange rate fluctuations, in contrast to the Rp12.73 billion exchange gain recorded in the same period last year.
After accounting for general and administrative expenses, funding costs, interest income, and income tax expenses, Astra Agro Lestari achieved a profit for the period of Rp 229.58 billion. This represents a decrease of 54.6% compared to the first quarter of 2022 when the profit amounted to Rp 505.70 billion.
The net profit attributable to the owners of the company declined by 53.51% to Rp 224.72 billion in the first quarter of 2023, in comparison to Rp 483.45 billion in the same period last year. AALI's basic/diluted earnings per share also decreased from Rp 251.18 to Rp 116.76 as of March 31, 2023.
As of the same date, PT Astra Agro Lestari's total assets amounted to Rp 29.38 trillion, total liabilities stood at Rp 6.9 trillion, and total equity was recorded at Rp 22.48 trillion. The company's cash and cash equivalents reached Rp 1.91 trillion.
Environmental and Human Rights Concerns
PT Astra Astro Lestari is facing allegations of environmental and human rights violations in its subsidiary's operations.
Last month, environmental activist NGO Walhi and Friends of The Earth addressed these concerns in writing.
"Astra Agro Lestari (AAL)—the second-largest palm oil company in Indonesia—announces that it has appointed independent consultant Eco Nusantara to further investigate environmental and human rights violations committed by three of AAL's subsidiaries in Central Sulawesi and West Sulawesi, Indonesia," stated WALHI on its official website dated April 6, 2023.