London Sumatra 9M15 net income decline of 33%.
PP London Sumatra Indonesia (LSIP) booked 9M15 revenues of Rp3.1t, down 13.5% yoy due to lower ASPs of palm products and rubber. CPO sales volume inched down 0.3% yoy to 326,154 tonnes (9M14: 327,251 tonnes), while palm kernel sales volume was up 5.9% yoy to 84,870 tonnes (9M14: 80,147 tonnes), and rubber sales volume increased 13.2% yoy to 9,521 tonnes (9M14: 8,409 tonnes). As a result of lower ASP, gross margin and operating margin contracted and resulted in a net income declined of 32.8% yoy to Rp470b. Net income accounted for 72.4% of consensus’ estimate, which is still in line.
