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Jakarta, April 30, 2009 – PT Sampoerna Agro Tbk. ("Sampoerna Agro") released its financial results for the period ending in March 31, 2009.
First quarter of 2009 was a really challenging period for Sampoerna Agro. The global economic
slowdown had affected demand for CPO reflected by the falling average market price of CPO
traded in MDEX for the first quarter of 2009 which was MYR1,946/ton, or 44.2% lower than the
first quarter of 2008 which stood at MYR3,485/ton. This reduction was also happening in
Sampoerna Agro. Average selling price of CPO was Rp5.29 million/ton (MYR1,727.28/ton), or
33.0% lower than the same period of 2008.
This situation was further compounded by the fact that first quarter of 2009 was a low‐crop
producing period in Indonesia, especially in South Sumatra region. Prolonged severe dry season that happened in the second half of 2006 is causing the current low‐crop production. Since
81.7% of total matured area is located in South Sumatra region, it has a major effect on the
overall reduction of production volume by 62.6% versus the same period of 2008. Based on
historical data, low‐crop producing period is usually followed by stronger consecutive
producing quarters until year end. The first quarter of 2005 and 2007 only contributed 10.9% and 11.8% to the total year’s production respectively. Subsequent to the challenging situation, the region also experienced heavy rainfall in the first quarter of 2009 that resulted in flooding of certain areas along river banks in March 2009.
In 2008, Sampoerna Agro managed to sell its entire CPO inventory carried over from the
previous year of approximately 30,000 tons resulting in an elevated sales volume amount for
that year. The high CPO inventory level being carried over was the result of national logistic
congestion problem arising from harvesting boom that occurred in last months of 2007.
On a side note, our germinated seeds recorded a higher average selling price of Rp6,106 per
seed in the first quarter of 2009, or 49.8% higher than the same period of the previous year.
Sampoerna Agro believes that CPO industry still looks promising for the remaining year.
Current CPO price is better than first quarter of 2009, and demand is still resilient.
Furthermore, some of our palms are entering their maturity stage adding to our total
production this year.
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Sum a te ra : Jln. Ba suki Ra hm a t No . 788, Pa le m b a ng 30127, Sum a te ra Se la ta n, Indo ne sia Te l +62- 711 813388 Fa x +62- 711 811585
CPO Rp bn 73.02 41.65 18.53 133.20 274.38 249.93 199.60 723.92 ‐81.6%
P.Kernel Rp bn 6.94 3.63 4.22 14.78 33.87 31.85 36.19 101.91 ‐85.5%
G.Seeds Rp bn 3.61 2.06 1.75 7.42 4.86 5.76 6.13 16.74 ‐55.7%
Rubber Rp bn 0.19 0.24 0.15 0.58 0.59 0.40 0.77 1.76 ‐67.1%
Total Sales Rp bn 83.76 47.58 24.67 156.01 313.71 287.94 242.69 844.34 ‐81.5%
