FajarPaper first quarter result reflects solid sales performance in both domestic and export markets
|
All figures are quoted in Rp billions unless otherwise stated |
Three months to March 31st, 2017 (unaudited) |
Three months to March 31st, 2018 (unaudited) |
|
Net Sales |
1,610 |
2,425 |
|
Gross profit |
322 |
680 |
|
Operating income |
257 |
588 |
|
EBITDA EBITDA in USD millions |
309 23 |
641 47 |
|
Net Income |
147 |
326 |
A strong increase in Sales revenue was driven mostly by an expansion in sales volumes using new capacity available through Paper Machine #8 (PM8), together with an increase in average selling price. In comparison with the same period in 2017, sales volumes for 2018 increased by 31% to 330,960 tons, reflecting increased export sales to 69,810 tons from 8,892 tons, while average selling prices in the domestic market and for exports have increased by 17% and 36%, respectively.
Our high-performance light weight paper sales accounted for72%, upfrom 65% over the same period last year,in line with our commitment to provide economical value to our domestic customers, as well as to cater to overseas market needs.
Gross profit margin hasincreased to 28%, compared to 20% last year, with increased selling prices and the benefit of lower recovered paper costs.The boost in sales volume to respond to rising demand in the consumer goods (FMCG) sector, e-commerce and exports, coupled with cost efficiency have contributed to improved margins. EBITDA grew to USD 47 million in this period compared to USD 23 million for the first quarter last year resulted from improved sales performance and lower production cost.
Outlook for 2018
Looking ahead, local interest rates were left unchanged in March, reflecting positive sentiment at Bank Indonesia, with no need for further easing. In addition to that, recent Moody’s sovereign rating upgrade would also benefit the Indonesian economy ahead. The contraction in January retail sales was reversed in February and continued growth is expected in the March retail data. China’s restrictive quotas on waste imports continue to present attractive opportunities to supply packaging paper there to fill the domestic demand gap.
The Company has benefitted from favorable business development both in the domestic and export markets resulting to better profitability performance. This will strengthen the financial position.
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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.