Salim Group's CPO Companies Maintain Profitability in 2025

Strong Financial Performance

The CPO companies under Salim Group, namely PT PP London Sumatra Indonesia Tbk (LSIP) and PT Salim Ivomas Pratama Tbk (SIMP), have demonstrated robust financial performance in the first nine months of 2025. LSIP reported a net profit of Rp 1.24 trillion for the period ending September 2025, representing a significant 55.27% year-on-year (YoY) increase compared to Rp 803.34 billion in the same period last year.

Revenue Growth Drivers

The revenue growth was primarily driven by a 35.3% YoY increase in revenue from customer contracts, reaching Rp 3.95 trillion in Q3 2025. This growth was attributed to higher average selling prices and increased sales volume of palm oil products. LSIP's revenue was mainly supported by the palm oil segment, which contributed Rp 2.93 trillion, followed by Rp 764.89 billion from the palm kernel and related products segment.

SIMP's Performance

Similarly, SIMP recorded a net profit of Rp 1.41 trillion for the period ending September 2025, marking a 75.97% YoY increase from Rp 806.19 billion. The company's revenue also witnessed a 32.75% YoY growth, reaching Rp 14.92 trillion in Q3 2025. SIMP's revenue was primarily generated from the vegetable oil and fats business segment (Rp 10.49 trillion) and the plantation segment (Rp 10.26 trillion).

Outlook

The strong performance of both LSIP and SIMP underscores the resilience of Salim Group's CPO business in 2025. The growth in profitability can be attributed to favorable market conditions, including higher palm oil prices and increased demand. As the companies continue to leverage these market conditions, investors should monitor their performance closely for potential investment opportunities.