PT Gajah Tunggal Tbk’s profit margins improve YoY in 1Q24

PT Gajah Tunggal Tbk reported higher margins in 1Q24 compared to the corresponding period in the previous year. The Company’s gross margins increased from 19.8% in 1Q23 to 23.3% in 1Q24. The increase was largely driven by lower input costs resulting from lower key raw material prices, offsetting the negative impact of a stronger US Dollar compared to the Indonesian Rupiah. The higher gross margins and lower operating expenses, mainly driven by lower transportation costs, increased the Company’s operating and EBITDA margins as well. The Company’s EBITDA increased from Rp 605 billion / US$ 39.7 million in 1Q23 to Rp 796 billion / US$ 51.2 million in 1Q24.The Company’s net profit increased from Rp 262 billion in 1Q23 to Rp 339 billion in 1Q24, despite a foreign exchange loss resulting from the translation of the Company’s US Dollar denominated liabilities, as the US Dollar appreciated versus the Indonesian Rupiah.

The Company’s net sales increased slightly from Rp 4,445 billion in 1Q23 to Rp 4,472 billion in 1Q24 as domestic sales continued to be solid, offsetting the negative impact from lower export sales as demand in the Company’s key export markets continued to be sluggish mainly due to the macroeconomic environment. The Company’s domestic sales increased by 5.9%, while export sales were 11.9% lower.

As of the end of 1Q24 the Company complied with the financial covenants of the IDR-syndicated facilities.