PT AKR Corporindo Tbk 9M 2022 Net Profit Increases 96% YoY – Rs 1,564 Billion – Solid Performance with Sustained Cash Flow and Strong Balance Sheet
October 24, 2022
JAKARTA, 24th October 2022 – PT AKR Corporindo Tbk (AKRA) recorded 96% growth in net profit attributable to equity holders of Rs 1.564 billion for the 9-month period ended 30th September 2022. This strong performance was supported by 100% growth in AKRA’s revenue to Rs 34.6 trillion, driven by sales growth in the trading and distribution segments. The company has continued to maintain a strong balance sheet and improved cash flow – The company’s net debt is (minus) 0.13x with a strong cash balance of Rs 4.37 trillion as of September 30, 2022.
Key Performance Highlights for 9M 2022
Mr. Haryanto Adikoesoemo, Chief Executive Officer, commenting on the results, said: “We are extremely pleased to report excellent financial results for the 9 months ended September 30, 2022; AKR continues to deliver strong results in 2022, making following strong performance since 2020. when economies opened post-covid restrictions; Thanks to its extensive logistics and supply chain infrastructure and disciplined supply chain management strategy, AKR has successfully delivered products to meet customer demand in a timely manner despite global disruptions and supply chain issues; AKR’s proven business backed by an innovative IT platform has enabled the company to manage fluctuations prices, maintain inventory and generate significant revenue growth. AKR has also maintained strict cost control and improved efficiency, which which has also allowed the company to achieve solid results”.
“Our financial position as of September 30, 2022 is also strong with an asset base of Rs 26.67 trillion comprising of current assets, fixed assets as well as investments in salable land and land under development in industrial and integrated port of Java; cash balance as of September 30 is 4,372 billion rupees with further reduction in the company’s net debt allowing the company to position itself well in times of global inflation and rising rates of interest,” Mr. Haryanto said.
“SEZ JIIPE, an integrated industrial and port estate developed by the company in Gresik, East Java, has also attracted increased interest from domestic and foreign investors; we are pleased to report that we have reached the commercialization target of land sales of 40 hectares for the year 2022 with the signing of a land sale purchase agreement and other related agreements for the provision of utilities and services with a large foreign investor that we hope to register in the fourth quarter of 2022. Reported progress of the largest copper smelter project under development by PT Freeport Indonesia, also bodes well for JIIPE’s prospects, in total JIIPE has leased an area of 193.5 ha for this project and we are also preparing all the necessary utilities that will generate recurring revenue in the future,” says Mr. Haryanto.
Cash flow maintained, balance sheet strong
Cash flow from operating assets during 9M 2022 reached Rp. 3,737 billion which was used by the company not only for capital expenditure, acquisition of land for JIIPE, payment of taxes, but also the payment of a large cash dividend of 829 billion rupees to the shareholders in the form of the final dividend for 2021 and the interim dividend for the year 2022.
The company reported further improvement in key financial ratios; Return on equity increased significantly to 20.6% and return on assets to 7.8%; with very healthy working capital ratios
Mr. Haryanto, commenting on the outlook and prospects for the year 2022, said, “The demand for basic chemicals and petroleum products distributed by the company to various sectors of the economy including manufacturing, mining mining, bunker, transportation sectors, continues to increase demand with the Indonesian economy continues to show growth; the demand for minerals such as nickel, bauxite, copper and also coal mined in Indonesia is increasing with the current geopolitical conditions and the emphasis on renewable energy; the Company sees good prospects for growth and we are confident to meet or exceed our objectives for this year”
“The JIIPE project is seeing good demand from foreign and domestic investors and we are seeing good prospects for land sales from the major land bank ready for sale, but we are also targeting investors who need a port, a great need for public services which should drive the recurrent income of the Company; overall, we believe that these developments allow the company to monetize the assets of JIIPE while contributing to the overall growth of investments in the Country ”
PT AKR Corporindo Tbk
PT AKR Corporindo Tbk published this content on October 24, 2022 and is solely responsible for the information contained therein. Distributed by Audienceunedited and unmodified, on October 24, 2022 05:19:04 UTC.
Public now 2022
PT AKR CORPORINDO TBK Technical Analysis Trends
|Short term||Middle term||Long term|
|Medium consensus||TO BUY|
|Number of analysts||12|
|Last closing price||IDR1,435.00|
|Average target price||IDR1,474.58|
|Average Spread / Target||2.76%|