{"id":21667,"date":"2018-02-01T10:38:02","date_gmt":"2018-02-01T03:38:02","guid":{"rendered":"https:\/\/fp.konsep.com\/?p=21667"},"modified":"2021-01-12T11:23:57","modified_gmt":"2021-01-12T04:23:57","slug":"116-company-latest-update-february-2018","status":"publish","type":"post","link":"https:\/\/www.fajarpaper.com\/hr\/116-company-latest-update-february-2018\/","title":{"rendered":"Company latest update – February 2018"},"content":{"rendered":"

Strong growth at FajarPaper driven by new capacity and market-leading lightweight paper sales<\/b><\/p>\n\n\n\n\n\n\n\n\n
\n

All figures\u00a0<\/strong>are\u00a0<\/strong>Audited and quoted in Rp billions unless otherwise stated<\/strong><\/p>\n<\/td>\n

\n

Year ending<\/strong><\/p>\n

December 31st 2016<\/strong><\/p>\n<\/td>\n

\n

Year ending<\/strong><\/p>\n

December 31st 2017<\/strong><\/p>\n<\/td>\n<\/tr>\n

\n

Net Sales<\/p>\n<\/td>\n

\n

5,875<\/p>\n<\/td>\n

\n

7,337<\/p>\n<\/td>\n<\/tr>\n

\n

Gross profit<\/p>\n<\/td>\n

\n

1,179<\/p>\n<\/td>\n

\n

1,413<\/p>\n<\/td>\n<\/tr>\n

\n

Operating income<\/p>\n<\/td>\n

\n

969<\/p>\n<\/td>\n

\n

1,158<\/p>\n<\/td>\n<\/tr>\n

\n

EBITDA<\/p>\n

EBITDA\u00a0in USD millions<\/p>\n<\/td>\n

\n

1,190<\/p>\n

89<\/p>\n<\/td>\n

\n

1,370<\/p>\n

102<\/p>\n<\/td>\n<\/tr>\n

\n

Net Income<\/p>\n<\/td>\n

\n

778<\/p>\n<\/td>\n

\n

596<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Jakarta<\/strong>,<\/strong>\u00a0<\/strong>26\u00a0<\/strong>February, 2018<\/strong>:\u00a0PT Fajar Surya Wisesa Tbk (FASW.JK), also known as FajarPaper, has released its audited financial statements for the\u00a0years\u00a0ended 31st December, 2017 and 2016. The financial statements can be found by following this link:<\/p>\n

http:\/\/www.fajarpaper.com\/investor-relations\/financial-reports<\/a><\/p>\n

\u00a0\u00a0<\/strong><\/p>\n

Topline growth<\/strong><\/p>\n

\u00a0<\/p>\n

The company\u00a0achieved substantial sales growth of 25% to Rp 7.3 trillion in 2017, having successfully launched additional capacity of 300,000 tons per annum which helped strengthen domestic market share, and supported an export drive into China in the second half of the year. Both gross and operating margins have been sustained, with a rise of 20% in operating income to Rp 1.2 trillion.<\/p>\n

\u00a0<\/p>\n

Market leadership<\/strong><\/p>\n

\u00a0<\/p>\n

The company has continued to\u00a0grow its sales\u00a0using the PerformaMedium and PrimeLiner ranges of high-performance, lightweight packaging paper that facilitates valuable efficiencies and cost savings, together with being fully recyclable. As Indonesia\u2019s domestic retail sector and FMCG continues to evolve with growth\u00a0of over 20%\u00a0in e-commerce sales and on demand deliveries, the company\u2019s new paper range is proving ideal for use in modern packaging and logistics systems.<\/p>\n

\u00a0\u00a0<\/p>\n

This\u00a0resulted in\u00a0a rise of\u00a014% in sales volume for the year to 1,063,590 tons, supported by an increase in average sales prices of 10%. An export drive, primarily to China, contributed 15% of total annual revenue, up significantly\u00a0compared to\u00a02016.<\/p>\n

\u00a0<\/p>\n

International market developments<\/strong><\/p>\n

\u00a0<\/p>\n

Over the first half of the year, waste paper prices \u2013 both domestic and imports \u2013 increased.\u00a0\u00a0In the second half of the year international market supply conditions changed, sending waste paper prices lower.\u00a0\u00a0The company was able to respond, leveraging its large-scale capacity, in time with the new capacity coming online during the year,\u00a0to benefit from the weakening of international recovered paper prices.<\/p>\n

\u00a0<\/strong><\/p>\n

Operations<\/strong><\/p>\n

\u00a0<\/p>\n

A new paper machine,\u00a0PM8 with\u00a0300,000 tons capacity, which can be entirely dedicated to meeting demand for lightweight packaging paper, was commissioned\u00a0in mid\u00a0year.\u00a0In the year ahead,\u00a0the company will be able to take advantage of a full 12 months of production of PM8. Total available manufacturing capacity stands at 1,300,000 tons per annum.\u00a0\u00a0<\/p>\n

\u00a0<\/strong><\/p>\n

Earnings<\/strong><\/p>\n

\u00a0<\/p>\n

Net income for the year was Rp 596 billion,\u00a0or Rp 240 per share.\u00a0The net income for the year has taken into\u00a0account of higher interest cost on outstanding loans, a swing in foreign exchange costs (from Rupiah\u2019s\u00a0gains against the US Dollar in 2016, to a modest loss in 2017),\u00a0as well as\u00a0higher taxation.\u00a0<\/p>\n

\u00a0<\/p>\n

Financial position<\/strong><\/p>\n

\u00a0<\/strong><\/p>\n

The completion of the latest capacity expansion,\u00a0including a new\u00a055 mega watt\u00a0power plant, means the company is now able to focus on deleveraging.\u00a0At year-end, the company\u2019s Debt to EBITDA ratio improved from 3.4 to 3.0 times, alongside sound debt service coverage with all loan covenants comfortably met.\u00a0<\/p>\n

\u00a0<\/strong>
\u00a0<\/strong><\/p>\n

Outlook<\/strong><\/p>\n

\u00a0<\/p>\n

Our future focus will be on sustaining our leading position. Prospects for the company in the year ahead are encouraging,\u00a0as\u00a0GDP growth is expected to continue to improve from 5.05% in 2017 to 5.4% by the end of 2018.\u00a0FMCG consumption is on the rise, specifically in the food sector, accounting for 70% of the company\u2019s\u00a0domestic\u00a0sales, with rolling yearly growth of 10% in 2017. E-commerce is growing significantly, a market estimated to be worth US$ 7 billion in 2017, and a market which the company continues to pursue.\u00a0The medium term outlook for the Asia Pacific region remains robust, with accelerating urbanisation, demographic shifts and rising middle class buying power, growing consumer awareness of the value of recycling, and the use of technology in e-commerce\u00a0retailing, leveraging sophisticated supply chains and door to door deliveries.\u00a0\u00a0\u00a0<\/p>\n

\u00a0<\/p>\n

end.\u00a0<\/p>\n

\u00a0<\/p>\n

To learn more about this press release, please contact FajarPaper\u2019s Investor Relations Department, by sending your inquiries to\u00a0<\/em>ir@fajarpaper.com<\/em><\/a>, or contact +62 21 344 1316.<\/em><\/p>\n

More information can also be found from our website\u00a0<\/em>www.fajarpaper.com<\/em><\/a>.<\/em><\/p>\n

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) and Joint Crediting Mechanism (JCM) registered company, catering in high capacity and continous delivery of packaging paper supply, and providing up-to-date innovation and quality packaging paper products.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Strong growth at FajarPaper driven by new capacity and market-leading lightweight paper sales All figures\u00a0are\u00a0Audited and quoted in Rp billions unless otherwise stated Year ending December 31st 2016 Year ending December 31st 2017 Net Sales 5,875 7,337 Gross profit 1,179 1,413 Operating income 969 1,158 EBITDA EBITDA\u00a0in USD millions 1,190 89 1,370 102 Net Income […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"quote","meta":[],"categories":[96],"tags":[],"_links":{"self":[{"href":"https:\/\/www.fajarpaper.com\/hr\/wp-json\/wp\/v2\/posts\/21667"}],"collection":[{"href":"https:\/\/www.fajarpaper.com\/hr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fajarpaper.com\/hr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fajarpaper.com\/hr\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fajarpaper.com\/hr\/wp-json\/wp\/v2\/comments?post=21667"}],"version-history":[{"count":1,"href":"https:\/\/www.fajarpaper.com\/hr\/wp-json\/wp\/v2\/posts\/21667\/revisions"}],"predecessor-version":[{"id":21672,"href":"https:\/\/www.fajarpaper.com\/hr\/wp-json\/wp\/v2\/posts\/21667\/revisions\/21672"}],"wp:attachment":[{"href":"https:\/\/www.fajarpaper.com\/hr\/wp-json\/wp\/v2\/media?parent=21667"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fajarpaper.com\/hr\/wp-json\/wp\/v2\/categories?post=21667"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fajarpaper.com\/hr\/wp-json\/wp\/v2\/tags?post=21667"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}