PT. AKR Corporindo, Tbk
JAKARTA, April 26, 2023 – PT AKR Corporindo Tbk (AKRA) reported 42% yoy growth in Net Profit attributable to Equity holders of Rp 607 Billion for the 3 month period ended March 31, 2023 compared to Rp 428 Billion during Q1 2022. This performance is in continuation of the strong results over the past 3 years. The Company reported Consolidated Sales revenue of Rp 10,959 billion during Quarter 1 2023. EBITDA during Q 1 2023 is Rp 919 billion 41% higher than same period last year.
AKRA continues to maintain a strong balance sheet during Quarter 1 2023, improving financial ratios supported by efficient working capital management; Current ratio of the Company improved to 1.7x and Return of Equity during this period is reported at 21% .
Key Performance Highlights for 3M 2023
- Net profit for Q1 2023 : Rp 607 billion 42%yoy growth
- Gross Profit for Q1 2023 : Rp 1,070 billion 45% Yoy Growth
- EBITDA for Q1 2023: Rp 919 Billion 41%yoy growth
- Breakdown of Sales Revenue - Q1 2023:
o Trading & distribution: Rp 10,012 Billion
o Industrial estate Segment: Rp 548 Billion
o Manufacturing and logistic segment: Rp 399 Billion
- Net profit for the Year prior to Minority Interest FY 2022 recorded 42% growth to Rp 679 billion
- Strong Balance Sheet:
o Total Assets as at 31st March 2023 Rp 23,825 billion (Q1 2022: Rp 25,263 billion)
o Total Equity as at 31st March 2023 Rp 13,805 billion (Q1 2022: Rp 11,725 billion)
o Current ratio of the company: 1.7x higher compared to Q4 2022 (1.4x)
o Net Gearing of the company: 0.05x
o Cash balance on 31st March 2023 – IDR 1,788 billion.
CONSOLIDATED FINANCIAL STATEMENT
Summary of Profit and Loss Account For the Three Months Period Ended 31st March 2023 (Unaudited)
Revenue per segment – consistent growth with higher traction from industrial estate
Revenue of Q1 2023 shows consistent growth in trading and distribution segment with increasing contribution from industrial estate segment. During Q1 2023, Industrial estate segment booked land sales of Rp 482 billion and lease rentals and utilities increased to Rp 66 billion; in the month of March 2023 JIIPE booked land sales from a large foregin company, Hailiang who will be constructing plant for Copper foil and sheets; Trading and distribution revenue grew to Rp 10,012 billion during Q1 2023 from Rp 9,600 billion during Q1 2022 registering a growth of 4.3%;
Revenue per segment
Gross Profits – Higher contribution from Industrial Estate segment
Trading and distribution gross profit increased by 20%yoy to Rp 717 billion. Industrial estate segment contributed 26% of the Consolidated gross profit and grew 352%yoy to Rp 276 billion during Q1 2023; Overall Gross Margin during the Q1 2023 improved to at 9.76% of Sales Revenue.
Gross profit per segment
Mr. Haryanto Adikoesoemo, President Director commenting on the results said, “We are happy to announce financial results for the 3 months ended 31th March 2023; AKR continues to deliver strong performance in the beginning of 2023. With extensive logistics and supply chain infrastructure and disciplined supply chain management strategy, AKR has succeeded in delivering products to meet customer demand in timely manner despite the global disruptions and supply chain issues. Furthermore AKR is consistently executing stringent working capital management in the middle of rising interest rate environment and market uncertainty leading to a leaner balance sheet. Also, we also make efforts to perform efficiently which lead our opex-to-gross profit ratio to decline to 24% from 27% in 1Q22.”
“We continue to perform consistently with Net Profits for 1Q23 reaching IDR 607bn or growing by 42%yoy. This strong growth stemmed from improving trading and distribution business and higher contribution from JIIPE as we continue to intensively market Land and utilities which has enabled us to finalise land sales and utilities contracts with international companies. We believe the mix of investment will provide strong and consistent growth to the shareholders.”
Mr Haryanto commenting on the prospects and outlook for the year 2023 said, “the macroeconomic indicators shows that Indonesia is in the direction of expanding the down stream and manufacturing industry, providing room for growth for basic chemicals and petroleum products to various sectors. With strong support from government and steady development, this will serve as tailwind for the company.”
“Furthermore, our industrial estate business starts to gain significant traction as down stream program of government shows continous progress and better investment environment; the largest copper smelter being built in JIIPE and investments from various down stream manufacturing industries is creating an ecosystem for Copper and EV related industries. JIIPE project is seeing good demand from foreign and domestic investors and this will spur the land sales and recurring income of the Company in the short to medium term”, said Mr Haryanto
STRONG BALANCE SHEET adapting to rising rate environment
AKR Balance sheet as at 31st December 2022 reflects a strong position with Total Assets of Rp 23,825 billion and Net Equity of Rp 13,805 billion. The company is also adapting to potential rising interest rate environment in the upcoming quarters by efficient working capital management leading current ratio to improve to 1.7x in 1Q23 from 1.4x. the net gearing ratio is also maintained at the low level at 0.05x the Q1 2023 with gradual reduction of interest bearing debt.
The Company's reported further improvement in key financial ratios; Return on Equity improved significantly to 21% compared to previous periods and Return on Assets to 10%; with very healthy working capital ratios.
Interest Bearing Debt and Net Gearing Ratio
ROE and ROA
The consolidated financial statements that have been submitted to OJK and IDX today can be downloaded from the company's website www.akr.co.id
PT AKR Corporindo Tbk
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