MAHKOTA GROUP PERFORMANCE IMPROVED IN 2018, THIS IS THE EXPLANATION OF MANAGEMENT
08 August 2018
KONTAN.CO.ID - JAKARTA. PT Mahkota Group Tbk ( MGRO ) posted a fairly positive performance in the first six months of this year.
MGRO posted an 11% increase in revenue of IDR 836.59 billion as of June 30, 2018 from IDR 755.04 billion in the same period the previous year.
The company's financial report stated that cost of revenue rose 12% to IDR 787.78 billion from cost of revenue of IDR 704.29 billion.
Gross profit also increased 6% to IDR 53.80 billion from IDR 50.75 billion in the same period last year.
Loss attributable to owners of the parent entity fell 28.5% to IDR 17.82 billion from IDR 24.93 billion in June the previous year.
The company's total assets increased by 1.7% to IDR 981.96 billion as of June 30, 2018, up from IDR 964.71 billion as of December 31, 2017.
Usli Sarsi, President Director of MGRO said, the improved performance experienced by his company in the first semester of this year was due to sufficient rainfall from the end of 2016 to 2017 so as to increase the production of fresh fruit marks (FFB) from oil palm.
“When compared to 2016 to 2017, we did experience a decline in fresh fruit bunch production due to the long dry season and many peatlands burned in Riau and surrounding areas in 2015. The fires caused the harvest in 2016 and 2017 to decline,” he explained, Tuesday (7/8).
However, Usli said this year MGRO's performance has started to normalize and will be even better. “Moreover, in the second semester of this year it will be the peak harvest for palm fruit so that it can help improve the company's performance,” he added.
Regarding the revenue target, Usli expects MGRO to be able to book a 10%-15% increase in revenue or around IDR 2 trillion compared to last year. Meanwhile, net profit is expected to grow 100% to IDR 50 billion compared to 2017.
Regarding capital expenditure (capex), MGRO is targeting to raise IDR 40 billion to IDR 50 billion from the IPO proceeds last July, which amounted to IDR 158.82 billion.
“The funds will begin to be used in September for the subsidiary's working capital such as purchasing raw materials and stocking CPO. And it is expected that by the end of the year it will be absorbed by 30%,” he said.