Gajah Tunggal Tbk PT : PT Gajah Tunggal Tbk realized close to 7% sales growth in 1H19 compared to 1H18
July 26, 2019 at 12:50 am EDT
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PT Gajah Tunggal Tbk realized close to 7% sales growth in 1H19 compared to 1H18
PT Gajah Tunggal Tbk's net sales increased by 6.7% from Rp 7,180 billion in 1H18 to Rp 7,663 billion in 1H19. The Company managed to grow its sales in the domestic replacement and OEM market, as well as exports. Export sales contributed most to the Company's sales growth with an increase of 12.9%, while the Company's sales in the domestic market increased by 3.3%.
The Company's gross margins declined slightly from 17.1% in 1H18 to 16.7% in 1H19. The weaker Indonesian Rupiah versus the US Dollar increased the dollar-based costs of the Company which resulted in the margin decline. Despite the decline in gross margin, the Company's gross profit increased YoY. The Company faced higher operating expenses as a result of increased marketing and distribution costs. As a result, the Company realized a lower operating profit and EBITDA. The Company's EBITDA declined from Rp 876 billion/USD 64.1 million in 1H18 to Rp 814 billion/USD 57.1 million in 1H19. However, the Company's bottom line recovered in 1H19, as the Company recorded a net profit of Rp 164 billion compared to a net loss of Rp 94 billion in 1H18. The Company's net profit benefited from a gain on foreign exchange which was the result of a positive translation of the Company's US Dollar denominated debt, since the Indonesian Rupiah appreciated at the end of 1H19 compared to the end of FY18.
As of the end of 1H19 the Company complies with the covenants of the Senior Secured Term Loan.
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PT Gajah Tunggal Tbk published this content on 26 July 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 July 2019 04:49:05 UTC
PT Gajah Tunggal Tbk is an Indonesia-based integrated tire manufacturer. The Company produces and distributes tires for passenger car, sport utility vehicles (SUVs), commercial, off-the-road, industrial and motorcycles. It also manufactures and distributes other rubber related products, such as synthetic rubber, tire cords, inner tube, flap, o-ring and others. The Company owns and operates an integrated tire manufacturing facility in Indonesia. The Companyâs products include GT LUG, GT MAX TRACTION, GT MUD TRACTION, GT SUPER, GT SUPER 88, GT SUPER 88N and GT SUPER GRIP. The Companyâs installed production capacity for passenger car radial tires (PCR), TBR tires, bias tires and motorcycle tires 45,500, 2,300, 13,000 and 83,000 tires per day respectively.