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Lower commodity prices for agriculture crops and the weakened Indonesian Rupiah affected our 2015 results, with the Group's consolidated revenue declining 8% to Rp13.8 trillion due to lower sales achieved by both Divisions.
Gross profit fell 22% over last year driven by lower average selling prices of palm products, while profit from operations dipped 49% in 2015 on lower gross profit, higher selling and distribution expenses, losses arising from changes in fair values of biological assets, higher foreign exchange losses and share of losses from CMAA. The Group reported a 78% decline in net profit to Rp299 billion in 2015, due primarily to lower profit from operations. Excluding the losses from foreign currency exchange and biological assets, the Group achieved a core profit of Rp555 billion in 2015, a 60% decrease over last year. In light of the global economic slowdown and weaker commodity prices, the Group tightened its cash flow and focused its strategies on cost control initiatives, prioritising on immature plantings and the expansion of infrastructure and facilities for organic growth.
Total non-current assets of Rp35.3 trillion in December 2015 were 6% or Rp2.0 trillion higher than December 2014. The increase was principally attributable to the following:
The increase was partly offset by lower advances and prepayments relating to the purchase of fixed assets, and lower carrying value of investment in CMAA due to foreign currency translation loss and share of losses in 2015.
Total current assets of Rp5.4 trillion in December 2015 were 21% lower than Rp6.8 trillion in December 2014. The decline was mainly due to lower cash levels. However this was partially offset by higher inventories arising from higher CPO and sugar at plantations, as well as higher CPO stocks at refineries.
As of December 2015, total current liabilities of Rp6.5 trillion were 7% lower than last year's Rp7.0 trillion. This was mainly attributable to the refinancing of certain shortterm facilities to long-term loans, and lower income tax An employee harvesting FFB payable in line with lower profit in 2015.
Total non-current liabilities of Rp10.0 trillion in December 2015 were 6% higher than Rp9.5 trillion in December 2014. This was mainly due to the refinancing of certain shortterm facilities to long-term loans as explained above. However this was partially offset by higher deferred tax liabilities.
The Group reported negative working capital of Rp1.1 trillion in December 2015. The Group is currently in the midst of reviewing its funding alternatives to optimise its capital structure and current ratio.
CASH FLOWS
The Group generated lower net cash flows from operations of Rp1.7 trillion in 2015 compared to Rp2.8 trillion in 2014. The decline was mainly due to lower operating profit in 2015. The Group recorded higher depreciation and amortisation during the periods arising from additions of fixed assets.
Net cash flows used in investing activities in 2015 was Rp3.4 trillion. This comprised principally capital expenditure relating to additions of fixed assets, biological assets and advances for projects of Rp2.2 trillion, and further investment in associate companies and a JV of Rp0.9 trillion. In 2015, no net proceeds were raised from financing activities. As a result, Group cash levels declined from Rp3.6 trillion in December 2014 to Rp2.0 trillion in December 2015.
