PP London Sumatra Indonesia: Feeling the Impact of Weak Global Demand
Perusahaan Perkebunan London Sumatra Indonesia (PP London Sumatra Indonesia or Lonsum), controlled by the powerful Salim Group, is an Indonesian plantation company focused on the production of palm oil, rubber, tea and cocoa. Its estates are located on the islands of Sumatra, Java, Kalimantan and Sulawesi. Amid weak global demand for commodities, the company posted a 72.1 percent fall in net profit over the first six months of 2013. Its shares have fallen 48.0 percent since the first trading day of 2013.
Click here to read the company profile of PP London Sumatra Indonesia
In February 2011, the company conducted a 1:5 stock split.
PP London Sumatra Indonesia's Financial Highlights:
| 2008 | 2009 | 2010 | 2011 | 2012 | |
| Net Sales | 3,846.2 | 3,199.7 | 3,592.7 | 4,686.5 | 4,211.6 |
| Gross Profit |
1,860.8 | 1,390.5 | 1,771.4 | 2,362.3 | 1,681.1 |
| Net Income | - | - | 1,033.3 | 1,701.6 | 1,116.2 |
| EBITDA | - | - | 1,564.6 | 2,245.0 | 1,553.3 |
| Operating Income | - | - | 1,360.6 | 2,005.5 | 1,324.0 |
| Total Assets | 4,921.3 | 4,845.4 | 5,561.4 | 6,791.8 | 7,552.0 |
| Total Liabilities | 1,724.3 | 1,031.9 | 1,007.3 | 952.4 | 1,272.1 |
| Earnings per share¹ | 136 | 105 | 151 | 249 | 164 |
| P/E Ratio (x) | - | - | 7.5 | 4.6 | 7.0 |
in billion Rupiah (IDR), except stated otherwise
¹ in Rupiah (IDR)
Source: PP London Sumatra Indonesia, Annual Report 2012
Future Projection PP London Sumatra Indonesia's Financial Highlights:
| 2010 | 2011 | 2012 | 2013F | 2014F | |
| Net Sales | 3,592.7 | 4,686.5 | 4,211.6 | 3,610.0 | 3,979.0 |
| Net Income | 1,033.3 | 1,701.6 | 1,116.2 | 587.0 | 597.0 |
| Earnings per share¹ | 151 | 249 | 164 | 86 | 88 |
| P/E Ratio (x) | 7.5 | 4.6 | 7.0 | 13.3 | 13.0 |
in billion Rupiah (IDR), except stated otherwise
¹ in Rupiah (IDR)
Sources: PP London Sumatra Indonesia, Annual Report 2012 & Investor Daily