Double Digit Sales Growth
This increase in net income was accompanied by an 11% increase in net revenue for the nine months ended on September 30, 2017 of Rp 136 billion to Rp 1,332 billion from Rp 1,196 billion in the third quarter of 2016.
Rachmat Harsono, the Vice President Director of PT Aneka Gas Industri Tbk, stated that, “Overall, our Company registered a number of positive growth in the third quarter of 2017. The sales growth in the third quarter of 2017 was mostly attributed to the Infrastructure (49%) Consumer Goods (19%), and Medical (12%) sectors compared to the same period in 2016. This sales growth corresponds with increased government spending in infrastructure, which is estimated at Rp 387.3 trillion for 2017.”
Improved Profitability Margins
AGII’s gross profit increased 9% in the third quarter of 2017 to Rp 714 billion while Operating Profit (EBIT) increased 2% to Rp 279 billion. The Company’s EBITDA grew 16% to Rp 479 billion in the third quarter of 2017 thereby resulting in Net Income of Rp 67 billion, or a growth of 47% compared to the same period in the previous year.
As a result of the significant sales and profitability growth, the Company booked improved profitability ratios, namely in terms of its gross profit margin, EBITDA margin, EBIT margin and net profit margin for the year, which was respectively at 46%, 36%, 21%, and 5%. Rachmat Harsono, added that, “During the first nine months of the year, we added 9 new filling stations that brings the total number of filling stations in our inventory to 95 overall. The performance to date serves as part of our commitment to maintain our position as the market leaders in Indonesia.”
Total assets of the Company as of 30 September 2017 is Rp 6.0 trillion while total liabilities is Rp 3.0 trillion; Total equity is Rp 2.8 trillion;
Maintaining Market Leadership
In addition to profitability, AGII was also able to maintain its liabilities to a sustainable level with Interest-bearing Debts/Equities ratio and Net Debts/Equities ratio as well as the Interest-bearing Debt to Operating EBITDA and Net Interest-bearing Debt to Operating EBITDA that improved respectively to 0.95x, and 0.80x as well as 4.24x and 3.57x. Rachmat Harsono stated that, “Through our business strategy of: 1)Develop business in our ecosystem and strengthening our competitive advantage, 2) Improve productivity through supply chain efficiency, leveraging technology and innovation, and 3) Consistently be the first mover to maintain market leadership position provides us with the comfort and confidence that AGII will be able to grow beyond the industry.”