PT Sampoerna Agro Tbk (SGRO) recorded a sales growth during the first quarter of 2021 of around 47% or to Rp1.33 trillion compared to the same period last year, Rp903.88 billion.

"The surge was mostly triggered by palm oil which contributed 83% of total sales during that period," SGRO CEO Budi Halim on Friday (23/4).

The company's total palm oil sales volume reached 114,828 tons, an increase of 37% as of the end of March compared to the same period last year. The average selling price for palm oil is Rp9,587 per kg, or 5% higher than the first quarter of 2020.

Thus, the value of palm oil sales to close the first three months of this year increased by 44% or reached Rp1.10 trillion compared to the previous year for the same period of Rp765.75 billion.

"The increase in sales value in the first quarter allowed the company to book a much higher operating margin. The gross profit margin and the E-commerce margin in the period were the highest in recent years, respectively 35.8% and 33.7%, or significantly higher than the 5-year average of 23.1%, and 24. %," he said.

The company's total fresh fruit bunch (FFB) production reached 495,573 tons, an increase of 35%. This achievement was the highest first-quarter production in Sampoerna Agro's history.

The biggest spike occurred in the South Sumatra region, which recorded an increase in FFB production by 54%, reaching 320,591 tons, while Kalimantan rose 10% to 174,982 tonnes. Simultaneously, the number of harvests in the company's nucleus estate contributed 62% of the total FFB production in that period, up 30% to reach 309,010 tons.

By the end of 2020, the planted area for oil palm reached 135,088 hectares consisting of oil palm lands producing around 126,498 hectares and immature 8,591 hectares.