{"id":21842,"date":"2017-07-31T09:24:59","date_gmt":"2017-07-31T02:24:59","guid":{"rendered":"https:\/\/fp.konsep.com\/?p=21842"},"modified":"2021-01-14T09:28:47","modified_gmt":"2021-01-14T02:28:47","slug":"108-company-latest-updates-july-2017","status":"publish","type":"post","link":"https:\/\/www.fajarpaper.com\/hr\/108-company-latest-updates-july-2017\/","title":{"rendered":"Company latest updates – July 2017"},"content":{"rendered":"

FajarPaper first semester result includes larger contribution from new successful product range<\/b><\/p>\n\n\n\n\n\n\n\n\n\n
\n

All amounts in\u00a0Rp\u00a0billion unless stated<\/p>\n<\/td>\n

\n

Six months to<\/p>\n

June 30th, 2016 (unaudited)<\/p>\n<\/td>\n

\n

Six months to<\/p>\n

June 30th 2017 (unaudited)<\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

3,217<\/p>\n<\/td>\n

\n

2,885<\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

679<\/p>\n<\/td>\n

\n

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

\n

Gross Margin %<\/p>\n<\/td>\n

\n

21%<\/p>\n<\/td>\n

\n

18%<\/p>\n<\/td>\n<\/tr>\n

\n

EBITDA (US$ million) and\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 EBITDA margin %<\/p>\n<\/td>\n

\n

48<\/p>\n

21%<\/p>\n<\/td>\n

\n

39<\/p>\n

18%<\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

404<\/p>\n<\/td>\n

\n

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

\n

Basic Earnings per share in\u00a0Rp\u00a0units<\/p>\n<\/td>\n

\n

163.1<\/p>\n<\/td>\n

\n

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

Jakarta\u00a0<\/strong>31<\/strong>\u00a0<\/strong>July 2017:\u00a0\u00a0<\/strong>PT Fajar Surya Wisesa TBK (\u201cFajarPaper\u201d or the \u201cCompany\u201d; ticker: \u201cFASW IJ\u201d) released unaudited results for the six months\u00a0period ended\u00a0June 30th 2017.<\/p>\n

Sales revenue and earnings<\/strong><\/p>\n

Total sales revenue for\u00a01H 2017\u00a0was lower by 10% at Rp 2,885\u00a0billion, compared to 1H 2016, due to : 1)\u00a0the switch to lighter weight paper, tempered by improved prices, and 2)\u00a0the timing of the seasonal holidays at Ramadan, falling in\u00a02Q 2017, versus\u00a0in 3Q 2016.<\/p>\n

Despite the seasonal impact and 25% year rise in raw material fibre prices,\u00a0in 1H 2017,\u00a0profitability has held up with gross margin attaining 18% and operating margin 14%,\u00a0respectively. EBITDA margin for the period was 18%,\u00a0compared to 21% a year ago.\u00a0Foreign exchange gain was Rp 29 billion, compared to Rp 126 billion last year, therefore\u00a0Pre-tax profit and Net Income for the first six months\u00a0were\u00a0Rp 269 billion\u00a0and\u00a0Rp 183 billion, respectively. Basic earnings per share were\u00a0Rp 73.8 for the period.\u00a0<\/p>\n

Results commentary<\/strong><\/p>\n

FajarPaper achieved a satisfactory interim result indicating encouraging demand from leading consumer goods manufacturers for the company\u2019s range of lightweight, high strength packaging papers, first introduced\u00a0in 2015.<\/p>\n

Sales volume wise, the lighter grammage product range now accounts for almost 50% of the company\u2019s output compared to 23% at the same time last year.\u00a0\u00a0Reflecting the change in product mix to lighter paper sales, the total 2017 volume (in tonnes) was correspondingly 16% lower,\u00a0433 thousand tonnes compared to 514 thousand tonnes in 2016.<\/p>\n

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.\u00a0Meanwhile, average selling price were 7% higher, year on year in the domestic market.<\/p>\n

Lastly, the Company commissioned\u00a0the third power plant, and\u00a0a new paper machine, PM8, in 2017,\u00a0which\u00a0will be fully dedicated to the new product range.<\/p>\n

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

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\u00a0from FajarPaper.<\/p>\n

Sustainable investment<\/strong><\/p>\n

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).\u00a0\u00a0Principal repayments fall due in the next 10 years, representing attactive terms for repayment\u00a0\u00a0compared to the tenor available under commercial term loan bank facilities. The facility is the latest export credit agency\u2019s facility addition to the existing facilities from Finnvera (Finland), OeKB (Austria), and Hermes (Germany).<\/p>\n

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

Summing up the first half performance,\u00a0the 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.<\/p>\n

For a copy of the complete results please visit\u00a0http:\/\/www.fajarpaper.com\/investor-relations\/financial-reports<\/a><\/p>\n

ends.\u00a0<\/strong><\/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 +62 21 344 1316.<\/em><\/p>\n

More information can also be found from our website\u00a0<\/em>www.fajarpaper.com<\/em><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

FajarPaper first semester result includes larger contribution from new successful product range All amounts in\u00a0Rp\u00a0billion unless stated Six months to June 30th, 2016 (unaudited) Six months to June 30th 2017 (unaudited) Net Sales 3,217 2,885 Gross profit 679 521 Gross Margin % 21% 18% EBITDA (US$ million) and\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 EBITDA margin % 48 21% 39 18% […]<\/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\/21842"}],"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=21842"}],"version-history":[{"count":1,"href":"https:\/\/www.fajarpaper.com\/hr\/wp-json\/wp\/v2\/posts\/21842\/revisions"}],"predecessor-version":[{"id":21843,"href":"https:\/\/www.fajarpaper.com\/hr\/wp-json\/wp\/v2\/posts\/21842\/revisions\/21843"}],"wp:attachment":[{"href":"https:\/\/www.fajarpaper.com\/hr\/wp-json\/wp\/v2\/media?parent=21842"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fajarpaper.com\/hr\/wp-json\/wp\/v2\/categories?post=21842"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fajarpaper.com\/hr\/wp-json\/wp\/v2\/tags?post=21842"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}