PT Gajah Tunggal Tbk Realized Close to 7% Sales Growth in 1H19 Compared to 1H18
PT Gajah Tunggal Tbk’s net sales increased by 6.7% from Rp 7,180 billion in 1H18 to Rp 7,663 billion in 1H19. The Company managed to grow its sales in the domestic replacement and OEM market, as well as exports. Export sales contributed most to the Company’s sales growth with an increase of 12.9%, while the Company’s sales in the domestic market increased by 3.3%.
The Company’s gross margins declined slightly from 17.1% in 1H18 to 16.7% in 1H19. The weaker Indonesian Rupiah versus the US Dollar increased the dollar-based costs of the Company which resulted in the margin decline. Despite the decline in gross margin, the Company’s gross profit increased YoY. The Company faced higher operating expenses as a result of increased marketing and distribution costs. As a result, the Company realized a lower operating profit and EBITDA. The Company’s EBITDA declined from Rp 876 billion/USD 64.1 million in 1H18 to Rp 814 billion/USD 57.1 million in 1H19. However, the Company’s bottom line recovered in 1H19, as the Company recorded a net profit of Rp 164 billion compared to a net loss of Rp 94 billion in 1H18. The Company’s net profit benefited from a gain on foreign exchange which was the result of a positive translation of the Company’s US Dollar denominated debt, since the Indonesian Rupiah appreciated at the end of 1H19 compared to the end of FY18.
As of the end of 1H19 the Company complies with the covenants of the Senior Secured Term Loan.
The Company received several awards from its OEM customers in the 2nd quarter. Suzuki Indonesia awarded the Company for “The Best Vendor Performance 2018”, while Isuzu Astra Motor Indonesia presented an award to PT Gajah Tunggal Tbk for its outstanding performance in Cost and Environment, Health and Safety in the year 2018.