Investor Relations

ANJ HELD ANNUAL GENERAL MEETING AND PUBLIC EXPOSE

05 Jun 2024

Jakarta, June 5, 2024 – PT Austindo Nusantara Jaya Tbk. (“ANJ”; IDX: ANJT) held its Annual General Meeting of Shareholders (AGMS), followed by a Public Expose, on June 5, 2024, in Jakarta. The event featured a comprehensive overview of the company’s operational and financial performance for 2023, along with a report on its operational and financial achievements through Q1 2024.

Nopri Pitoy, Finance Director, outlined several key factors influencing the company’s performance in 2023 and Q1 2024. These included extreme weather conditions that impacted production at some of ANJ’s plantations, as well as global economic challenges and geopolitical issues that created uncertainty in the international market. As a result, the demand for and pricing of crude palm oil (CPO) was affected, influencing ANJ’s financial outcomes.

Nopri further explained how the El Niño phenomenon, occurring from mid to late 2023, had diverse effects on ANJ’s operational areas across Indonesia. For instance, excessive rainfall in the Southwest Papua plantations increased humidity, leading to a spike in plant diseases. Meanwhile, in the North Sumatra II plantation, heavy rains caused river overflows, resulting in significant flooding.

In contrast, ANJ’s plantations in Belitung and West Kalimantan experienced drought conditions due to El Niño. Dry weather causes heat stress on pollinating weevils, leading to suboptimal fruit production, a condition known as parthenocarpy, which results in lighter fruit bunches and decreased productivity.

“We remain committed to maintaining production quality and achieving our company’s targets despite the challenges posed by rapid climate change. ANJ’s mitigation efforts demonstrate our dedication to adapting to climate anomalies and ensuring business sustainability by integrating regenerative agriculture practices in our plantation management,” Nopri stated.

ANJ's Achievements and Performance in 2023 and Q1 2024

From an operational perspective, ANJ delivered strong performance during the 2023 fiscal year. Fresh Fruit Bunch (FFB) production from its nucleus plantations increased 4.8%, reaching 881,051 metric tons compared to 840,581 metric tons the previous year. This growth and increased CPO production resulted in a 4.9% rise in CPO sales volume, totaling 288,941 metric tons compared to 275,320 metric tons in 2022.

However, the lingering effects of plant diseases caused by high humidity in Southwest Papua and flooding in the North Sumatra II plantations continued to impact operations in Q1 2024. ANJ produced 173,226 metric tons of Fresh Fruit Bunches (FFB) from its nucleus plantations, a 7.4% decrease compared to last year. Despite these setbacks, ANJ tried to recover production in April 2024, bringing the FFB output for the January–April 2024 period close to the previous year's levels. ANJ projects that this positive recovery trend will continue in the coming months.

Despite lower production compared to Q1 2023, ANJ recorded a 28.6% increase in EBITDA, reaching USD 8.5 million, up from USD 6.6 million in Q1 2023. The EBITDA margin rose to 17.3% over the same period.

“To ensure the sustainability of our business, we have integrated ESG initiatives into our business strategy. This commitment is rooted in our vision, mission, and values, emphasizing a balance between people, planet, and prosperity. Thanks to this dedication, ANJ has received several awards, highlighting our success in incorporating sustainability into our operations,” explained Lucas Kurniawan, ANJ’s President Director.

In 2023, ANJ achieved several milestones, including the prestigious PROPER Gold awarded to its subsidiaries PT Sahabat Mewah dan Makmur (SMM) and PT Austindo Nusantara Jaya Agri (ANJA), making ANJ the only palm oil company to earn this distinction. Additionally, PT Kayung Agro Lestari (KAL) and PT Austindo Nusantara Jaya Agri Siais (ANJAS) were awarded PROPER Green. Furthermore, the Ministry of Environment and Forestry honored ANJ’s President Director, Lucas Kurniawan, with the "Green Leadership Utama" award.

In 2023, ANJ also saw significant improvements in its ESG rating, including an upgrade from Sustainalytics, a Morningstar company specializing in ESG and corporate governance ratings. ANJ’s score increased by 2.9 points to 15.4, earning a Low-Risk Rating and placing ANJ first among global agricultural companies. Additionally, as assessed by Sustainalytics, ANJ climbed from 10th to 3rd place in the global food products industry.

Furthermore, ANJ improved its SPOTT score—an international transparency platform for the palm oil sector—from 91.1% in 2022 to 93.3%, ranking it 5th globally. Since 2019, ANJ has actively participated in the CDP disclosure platform, a leading international nonprofit operating a global environmental disclosure system. In the 2023 CDP assessment, ANJ achieved an A- rating for Forests in its palm oil business unit and a B rating for its edamame business unit. Additionally, ANJ received B ratings in both the Water and Climate Change categories.

Regarding corporate governance, ANJ earned a score of 100.27, or level 5 (>100.00), from the ASEAN Corporate Governance Scorecard (ACGS). This score represents the highest level and is designated "Leadership in Corporate Governance."

2024 Target

Nopri expressed ANJ’s optimism about the long-term growth of its CPO production, noting that the plantations' age profile remains in their prime productive years.

“Despite the challenges we face, we will continue to optimize our resources to achieve a CPO production target of approximately 300,000 metric tons this year. This target is supported by the productivity of our core plantations and increased purchases of Fresh Fruit Bunches (FFB) from external farmers. We anticipate improving production performance in the coming months as issues at several plantations are resolved,” explained Nopri.

To support this production goal, ANJ has allocated a capital expenditure budget of USD 36.8 million for the year. A significant portion of this budget will fund programs to enhance the company’s productivity. These initiatives include replanting programs in the Belitung Island and North Sumatra I plantations, land compensation at the ANJ plantation in South Sumatra, road laterization, employee housing, and constructing a power plant for the mill in the Southwest Papua plantation. Additionally, ANJ is undertaking a project to raise and reinforce river dikes in the North Sumatra II plantation to mitigate flooding.

“We believe these programs will foster productivity growth in the coming years. Alongside innovations in agronomy practices, we expect to achieve maximum productivity. Furthermore, we remain committed to our climate change mitigation and adaptation strategies, which ANJ has implemented since 2012. This commitment includes integrating ESG practices into our business strategy to achieve our net-zero carbon emissions target by 2030,” Nopri concluded.

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