PT Gajah Tunggal Tbk Realized 11.9% Sales Growth in FY22

PT Gajah Tunggal Tbk reported Net Sales of Rp 17,170 billion in FY22, an increase of 11.9% compared to the reported Net Sales of Rp 15,344 billion in FY21. Sales in the domestic market remained healthy and increased by 20.3%, more than offsetting the sales decline of 4.5% in the export markets. Export sales remained sluggish as global supply chain bottlenecks limited shipping container availability, in particular in the early part of the year, as well as slower demand in key export markets in the later part of the year, mainly driven by headwinds in the global economy.

The Company’s gross margins declined slightly from 13.9% in FY21 to 13.7% in FY22. Higher input costs resulting from higher freight and raw material prices, as well as a depreciating Rupiah versus the US Dollar negatively impacted gross margins. The Company was able to largely offset the negative impact by increasing the selling prices of its products. Operating and EBITDA margins declined in FY22 compared to FY21 mainly due to higher selling expenses. The higher selling expenses were largely driven by increased transportation costs. The Company’s EBITDA declined from Rp 1,453 billion / US$ 101.7 million in FY21 to Rp 1,441 billion / US$ 97.7 million in FY22. The depreciating Indonesian Rupiah also caused a loss on foreign exchange, primarily due to a translational adjustment of the Company’s US Dollar denominated liabilities. As a result, the Company recorded a net loss of Rp 191 billion in FY22 compared to a net profit of Rp 74 billion in FY22.

As of the end of FY22 the Company complied with the financial covenants of the IDR-syndicated facilities