PT Gajah Tunggal Tbk net profit restored in FY23

PT Gajah Tunggal Tbk’s Net Sales declined slightly from Rp 17,170 billion in FY22 to     Rp 16,971 billion in FY23. The slight decline of 1.2% was caused by sluggish sales performance in the Company’s export markets as demand did not improve mainly due to macro-economic conditions. Export sales declined by 16.3%. On the other hand, domestic sales remained robust and increased by 5.3% in FY23 compared to FY22.

The Company’s profitability improved in FY23 compared to the previous year. Lower raw material costs and higher average selling prices of the Company’s products resulted in the Company’s gross margins improving from 13.7% in FY22 to 22.0% in FY23. The improvement in gross margins lifted the Company’s operating and EBITDA margins as well and fully offset the higher finance costs resulting from higher interest rates on a portion of the Company’s debt. The Company’s EBITDA improved from          Rp 1,441 billion / US$ 97.8 million in FY22 to Rp 2,799 billion / US$ 183.9 million in FY23. Since the Indonesian Rupiah was stronger at the end of FY23 compared to the end of FY22, a foreign exchange gain was recorded. Taking all this into consideration, the Company’s profitability was restored and a net profit of Rp 1,167 billion was generated in FY23 compared to a net loss of Rp 191 billion in FY22.

As of the end of FY23 the Company complied with the financial covenants of the IDR-syndicated facilities.