PT London Sumatra Indonesia Tbk (LSIP) posted a 174.1 percent profit growth for the year attributable to parent company owners throughout 2020 to Rp696 billion from Rp252 billion in the previous year.

"This growth achievement is in line with the increase in gross profit, decrease in general & administrative expenses, and foreign exchange gains which are partially offset by losses arising from changes in fair value of biological assets and increases in income tax expenses," said Director of LSIP, Benny Tjoeng in a press release on Monday (1/3).

In 2020, core Fresh Fruit Bunches (FFB) production fell 11.7 percent to 1,294,716 tons, mainly due to the impact of weather and oil palm replanting activities. Accompanied by the lower contribution of external FFB, total CPO production decreased by 16.9 percent YoY to 330,936 tons.

As production decreased, the sales volume of CPO fell 22.2 percent to 324,939 tons, and the sales volume of PK and PK derivative products decreased 21.9 percent to 97,552 tons.

"Lonsum's sales fell 4.4 percent to Rp3.54 trillion mainly due to lower sales volumes for palm oil and rubber products, however, this was partly offset by the increase in the average selling price (ASP) of palm products where CPO and PK increased by 26 respectively.  percent, "he explained.

Benny assessed that the agribusiness industry throughout 2020 was facing one of the most challenging years due to the impact of the Covid-19 pandemic around the world, volatility in commodity prices, and weather conditions. CPO prices increased significantly in the second half of 2020 from their previous lows in the second quarter of 2020, driven by expectations of the impact of weather conditions, limited supply of CPO, and increased demands for soybeans.

"The plantation industry is expected to remain challenging. We continue to strengthen our financial position, control costs and efficiency, increase productivity, prioritize capital expenditures on aspects that have the potential for growth, and focus on sustainable good agricultural practices, "he stressed.