PT Gajah Tunggal Tbk’s Net Sales increase by 5.3% YoY in 1H24

PT Gajah Tunggal Tbk reported Net Sales of Rp 8,548 billion in 1H24 compared to Rp 8,116 billion in 1H23. Sales performance in the domestic market remained robust increasing by 8.4% due to solid domestic replacement sales, offsetting negative sales performance in the OEM market as new vehicle sales were weak in 1H24. Sales in the Company’s export markets declined slightly by 3.1%, as demand in the Company’s key export markets remained lacklustre.

The Company’s profitability improved as the gross margin expanded from 18.7% in 1H23 to 22.4% in 1H24. The margin expansion resulted from lower input costs due to lower prices of certain key raw materials, offsetting the negative impact of the strengthening US Dollar versus the Indonesian Rupiah. The Company’s operating and EBITDA margin improved on the back of the higher gross margin and lower operating expenses, mainly driven by lower transportation costs. The Company’s EBITDA increased from Rp 1,029 billion / US$ 68.4 million in 1H23 to Rp 1,456 billion / US$ 92.4 million in 1H24. The Company’s net profit increased from Rp 353 billion in 1H23 to Rp 577 billion in 1H24 despite the loss on foreign exchange resulting from the translation of the Company’s US Dollar denominated liabilities, as the US Dollar was stronger compared to the Indonesian Rupiah at the end of 1H24 compared to the end of FY23.

As of the end of 1H24 the Company complied with the financial covenants of the IDR-syndicated facilities.