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Investor Relations| Press Releases
Company's latest updates - October 2017

FajarPaper achieves record result in September 2017

 

All figures are Audited and quoted in Rp billions unless otherwise stated

9m 2017

9m 2016

 

3Q 2017

2Q 2017

Net Sales

4,913

4,549

 

2,028

1,276

Gross profit

849

947

 

328

199

EBITDA in USD millions

63

71

 

24

16

Net Income

286

687

 

103

36

 Jakarta, 23 October 2017: PT Fajar Surya Wisesa TBK (FajarPaper) has released its unaudited results for the nine months to September 30th 2017. FajarPaper’s latest unaudited financial statements for the nine months periods ended 30 September, 2017 and 2016, can be found by following this link: http://www.fajarpaper.com/investor-relations/financial-reports

Result highlights – strong export boost revenue

Domestic sales improved considerably in the third quarter by around 50% more than second quarter, reflecting the shift in timing of the Lebaran holidays year to year. In addition to that we are also benefiting from an upturn in export sales going to China, starting in September 2017. Both conditions have resulted our net income to increase by almost triple, while our gross profit and EBITDA have increased by 65% and 50%, respectively.

Net sales are substantially higher, bringing total revenue for the period of Rp 4,913 billion, compared to the same period a year ago, contributed by higher average selling prices, higher sales volume, and export sales opportunity .

A restriction on waste paper imports in China has contributed to waste paper shortage, and significantly increasing China’s domestic waste paper costs, thus in the end, doubling the price for containerboards in the region.

The completion of a new paper machine (PM8) in June is in line with the current opportunity of export sales to China. The Company’s strategic decision to move into lighter weight papers, both corrugated medium paper and kraft-liner board, is also in line with the continued increase of the new products range demand, of which now accounts for more than 50% of the Company’s total sales. The new capacity from PM8 is fully available and committed for both domestic as well as regional export demands.

Net income has decreased to Rp 286 billion, or Rp 115 per share, primarily due to one-off gains on foreign exchange which has occured in 2016.

Demand for packaging paper is expected to grow steadily as the domestic economic outlook improves. In addition to that, the rapid development of e-commerce and online shopping are driving the changes in consumption and logistics fundamentals, for the benefit of the packaging paper industry.

FajarPaper is well positioned for the future, firstly from market acceptance of the light weight papers,  and secondly from the online retail growth, projected at around 18% annually, as published in recent article by Bisnis Indonesia, with source coming from statista.com.

end.

 

To learn more about this press release, please contact FajarPaper’s Investor Relations Department, by sending your inquiries to ir@fajarpaper.com, or +62 21 344 1316.

More information can also be found from our website www.fajarpaper.com.

FajarPaper is a Forest Stewardship Council-Chain of Custody (FSC-CoC), ISO 9001, ISO 14001, and OHSAS 18001 certified, as well as a Clean Development Mechanism (CDM) registered company, catering in high capacity and continuous delivery of packaging paper supply, and providing up-to-date innovation and quality packaging paper products.