PT Gajah Tunggal Tbk’s Net Sales increase by 6.9% YoY in 9M24

PT Gajah Tunggal Tbk reported Net Sales of Rp 13,442 billion in 9M24 compared to Rp 12,574 billion in 9M23. Sales in the domestic market continued to be positive, increasing by 7.3%. Domestic replacement sales continued to be strong, offsetting sluggish sales performance in the OEM market due to lower new vehicle sales in 9M24. Sales in the Company’s export markets increased by 6.4%, after a prolonged period of lacklustre sales performance. Demand in the Company’s key export markets improved in 9M24 compared to the corresponding period in the previous year.

The Company’s profitability remained healthy as the gross profit margin expanded from 20.5% in 9M23 to 21.8% in 9M24, despite the depreciation of the Indonesian Rupiah versus the US Dollar. The Company’s margin benefited from lower input costs due to lower prices of certain key raw materials. The higher gross profit margin as well as lower operating expenses, mainly due to lower transportation costs, increased the Company’s operating and EBITDA margin. The Company’s EBITDA increased from Rp 1,858 billion / US$ 123.2 million in 9M23 to Rp 2,231 billion / US$140.7 million in 9M24. The Company’s net profit increased due to higher sales and increased profit margin. The Company’s net profit increased from Rp 690 billion in 9M23 to Rp 989 billion in 9M24.

The Company managed to reduce the interest rate on the 2 IDR syndicated facilities with a floating rate. As of 24 September 2024, the margin on the syndicated facilities was reduced from 5.47% and 5.50%, respectively, to 1.57%.

As of the end of 9M24 the Company complied with the financial covenants of the IDR-syndicated facilities.