PT. AKR Corporindo, Tbk
JAKARTA, 24 July’ 2020 – PT AKR Corporindo Tbk (IDX ticker code: AKRA.IJ), distributor of Petroleum, Basic chemicals and provider of Logistic & supply chain services in Indonesia reported Net Profit for the Period of 1H 2020 of Rp452 bn (growth of +25% y/y). It was supported by Gross Profit growth of +22% y/y at Rp1,024bn and Operating Profit growth of 28% y/y at Rp633 bn. Net Profit for Equity Holders of Parent Entity was Rp432bn (growth of 10% y/y).
The performance was supported by steady contribution from Trading and Distribution business, supplemented by contribution from Industrial Estate and discipline over Operating Expenses. These results reflect growth momentum being maintained in 2Q 2020, in a very challenging operating environment. The Net Profit for the Period of 2Q 2020 of Rp211bn (growth +25% y/y) was supported by Gross Profit of Rp466bn (growth 15% y/y) and Operating Profit of Rp294bn (growth 24% y/y). Net Profit for Equity Holders of Parent Entity was Rp204bn (growth of +8% y/y).
The Company reported the unaudited financial results for the half year ended 30th June 2020 to Indonesian Stock Exchange today with the following key figures;
Trading & Distribution / Logistics
The Company posted revenue of Rp240 bn from Industrial estate segment during 1H 2020;
Mr. Haryanto Adikoesoemo, President Director of AKRA, said;
"The Company maintained the growth momentum in 1H 2020, particularly in a very challenging 2Q 2020. This is a testament to our 1) Stable and proven business model, 2) our product portfolio comprising essential products, 3) wide geographical presence supported by strong logistic infrastructure, and 4) hard work and experience of our management and employees to produce strong performance.
AKR business model is based on pass-through of volatility in product prices and exchange rates, eliminating inventory loss risk. This is reflected in another quarter of steady Gross Profit growth by our Trading and Distribution segment, despite sharp drop in Oil prices. JIIPE continues to see investor interest, translating into land sales and regular lease and utilities revenue. With the planned passing of Omnibus Law, this process is expected to accelerate.”
He further added, “In 2H 2020, we will do our best to maintain the current growth momentum. Recent increase in FAME quota by 45% will support this effort. We are closely monitoring the environment under which our customers are operating and the development of Covid-19 infection rate. But since we have been able to achieve significant milestone in the first half, we hope to be able to achieve our year- end target also.”
Strong balance sheet, Fundamentals remain Solid
PT AKR Corporindo Tbk