FajarPaper first semester result includes larger contribution from new successful product range

All amounts in Rp billion unless stated

Six months to

June 30th, 2016 (unaudited)

Six months to

June 30th 2017 (unaudited)

Net Sales



Gross profit



Gross Margin %



EBITDA (US$ million) and         EBITDA margin %





Net Income



Basic Earnings per share in Rp units



Jakarta 31 July 2017:  PT Fajar Surya Wisesa TBK (“FajarPaper” or the “Company”; ticker: “FASW IJ”) released unaudited results for the six months period ended June 30th 2017.

Sales revenue and earnings

Total sales revenue for 1H 2017 was lower by 10% at Rp 2,885 billion, compared to 1H 2016, due to : 1) the switch to lighter weight paper, tempered by improved prices, and 2) the timing of the seasonal holidays at Ramadan, falling in 2Q 2017, versus in 3Q 2016.

Despite the seasonal impact and 25% year rise in raw material fibre prices, in 1H 2017, profitability has held up with gross margin attaining 18% and operating margin 14%, respectively. EBITDA margin for the period was 18%, compared to 21% a year ago. Foreign exchange gain was Rp 29 billion, compared to Rp 126 billion last year, therefore Pre-tax profit and Net Income for the first six months were Rp 269 billion and Rp 183 billion, respectively. Basic earnings per share were Rp 73.8 for the period. 

Results commentary

FajarPaper achieved a satisfactory interim result indicating encouraging demand from leading consumer goods manufacturers for the company’s range of lightweight, high strength packaging papers, first introduced in 2015.

Sales volume wise, the lighter grammage product range now accounts for almost 50% of the company’s output compared to 23% at the same time last year.  Reflecting the change in product mix to lighter paper sales, the total 2017 volume (in tonnes) was correspondingly 16% lower, 433 thousand tonnes compared to 514 thousand tonnes in 2016.

All sales are by per tonne basis, therefore users receive on average 20% more paper by length, with superior runnability and strength for container box manufacturers. Meanwhile, average selling price were 7% higher, year on year in the domestic market.

Lastly, the Company commissioned the third power plant, and a new paper machine, PM8, in 2017, which will be fully dedicated to the new product range.

Financial position

The total level of debt has slightly reduced since year end in 2016 with the prospect of further reduction as cash flow over the remainder of 2017 is expected to improve. Strengthening second half sales are expected taking account not only the timing of the Ramadan holidays, but more significantly, the output from PM8 now fully commissioned, to meet increasing market uptake of the popular lighter weight products from FajarPaper.

Sustainable investment

In addition to recycling fibre instead of using virgin forest pulp, and as part of the ongoing commitment to sustainability, the company continues to focus on energy efficiency, a key component in cost of sales. The recent signing of a US$ 29 million facility agreement, supported by China Export & Credit Insurance Corporation (Sinosure) to fund a 55 MWh power plant, supplied by Shanghai Power Energy Research Institute (SPERI).  Principal repayments fall due in the next 10 years, representing attactive terms for repayment  compared to the tenor available under commercial term loan bank facilities. The facility is the latest export credit agency’s facility addition to the existing facilities from Finnvera (Finland), OeKB (Austria), and Hermes (Germany).


Summing up the first half performance, the domestic market take up of our new paper range signals widespread acceptance, and we stand to gain from first mover advantage, with some signals of improvement in consumer demand for the second half of the year. The rapidly emerging e-commerce market with door to door packaged deliveries is another positive factor which will increasingly contribute to growth in packaging paper sales in the years ahead.

For a copy of the complete results please visit http://www.fajarpaper.com/investor-relations/financial-reports


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