PT Gajah Tunggal Tbk Sales Recover in 3Q18
PT Gajah Tunggal Tbk’s net sales recovered QoQ in 3Q18 driven by an improvement in both domestic and export sales. Although export sales picked up in 3Q18, YoY performance is still negative for the period of 9M18. Domestic sales however, continued to be robust and were able to offset the Company’s sales decline in the export markets. As such, the Company’s total sales increased by 4.0% from Rp 10,806 billion in 9M17 to Rp 11,240 billion in 9M18.
The Company’s gross margins declined from 16.8% in 9M17 to 16.3% in 9M18. The depreciation of the Indonesian Rupiah versus the US Dollar negatively impacted the Company’s margins as well as did higher prices for certain key raw materials, in particular carbon black. In spite of the lower gross margin the Company managed to increase its gross and operating profit. Operating margins increased from 6.0% in 9M17 to 6.6% in 9M18 reflecting mainly lower transportation expenses and marketing related costs. The Company’s EBITDA therefore also increased from Rp 1,208 billion/USD 90.5 million in 9M17 to Rp 1,276 billion/USD 91.8 million in 9M18. The depreciating Indonesian Rupiah also caused a loss on foreign exchange as a result of the translational adjustment for predominately the US Dollar denominated debt of the Company. Consequently, the Company realized a net loss of Rp 229 billion in 9M18 compared to a net loss of Rp 141 billion in 9M17.
The Company complied with the amended financial covenants of the Senior Secured Term Loan Facilities per the end of 9M18. PT Gajah Tunggal Tbk received 3 TOP CSR Awards from TOP Business in October 2018. The Company was recognized in 3 categories: TOP CSR in the tire sector, TOP CSR Education Program and Company Director Mrs. Catharina Widjaja was recognized as TOP Leader on CSR Commitment. These awards acknowledge the Company’s comprehensive and holistic CSR program.