PT Gajah Tunggal Tbk’s Net Sales increase by 6.2% YoY in FY24
PT Gajah Tunggal Tbk reported Net Sales of Rp 18,029 billion in FY24 compared to Rp 16,971 billion in FY23. Sales in the domestic market continued to be strong, increasing by 8.1%. Domestic replacement sales continued to be buoyant. Despite weaker domestic new vehicle sales in FY24, the Company’s OEM sales bucked the trend and remained stable. Sales in the Company’s export markets did not deteriorate further and increased slightly by 0.5% compared to the previous year.
The Company’s profitability remained healthy although the gross profit margin declined slightly from 22.0% in FY23 to 21.5% in FY24. The margin decline was mainly caused by higher key raw material prices as well as a depreciation of the Indonesian Rupiah versus the US Dollar. The Company’s operating and EBITDA margins declined to a lesser extent, since operating expenses as a percentage of sales were lower in FY24 compared to FY23 mainly due to lower transportation costs. Despite the margin decline, EBITDA increased from Rp 2,791 billion / US$ 183.9 million in FY23 to Rp 2,936 billion / US$ 186.3 million in FY24, driven by the Company’s higher sales. The Company incurred higher finance costs in FY24 due to expenses related to the early redemption of the outstanding Senior Secured Notes due in 2026, which will be effective in January 2025. Furthermore, a loss on foreign exchange was recorded, mainly due to the translation of the Company’s US Dollar denominated liabilities. All in all, the Company’s net profit increased from Rp 1,167 billion in FY23 to Rp 1,187 billion in FY24.
On 17 December 2024, the Company sent out an early redemption notice to the Company’s Senior Secured Notes holders to redeem all outstanding Notes on 16 January 2025. The redemption is funded by an IDR denominated syndicated loan obtained from BCA, Permata Bank, CIMB Niaga, BCA Digital, KEB Hana and OKE Bank. As of 16 January 2025, the Company has no long-term debt denominated in US Dollar outstanding.
As of the end of FY24 the Company complied with the financial covenants of the IDR-syndicated facilities.
