Heavy Equipment Sales Skyrocket, Kobexindo's Revenue Soars 134 Percent To 119.32 Million US Dollars In 2021

JAKARTA - PT Kobexindo Tractors Tbk (KOBX), an integrated heavy equipment provider, managed to record revenue growth of 134 percent throughout 2021. In its annual (audited) financial statements, KOBX's net revenue in 2021 was recorded at 119.32 million US dollars, an increase compared to last year, 2020 is 50.97 million US dollars.

This achievement is the best performance in the last three years before the pandemic. The positive catalyst for the surge came from the soaring prices of coal and mineral commodities at the end of 2020. The price increase triggered mining producers to resume operations and increase productivity through the purchase of heavy equipment, both to increase fleets and to rejuvenate units.

"The sales segment of heavy equipment units consisting of mining and non-mining heavy equipment became the largest contributor. This segment achieved sales of 89.99 million US dollars or 75.42 percent of total revenue on a consolidated basis," said Andry B. Limawan, President Director PT Kobexindo Tractors Tbk, in a written statement, Monday, April 4.

KOBX's revenue growth in sales of mining and non-mining heavy equipment managed to grow 205.01 percent throughout 2021. Other positive contributions were also made by the other four segments, such as sales of spare parts, mining repairs and contractors, rental of heavy equipment, and rental of buildings.

The spare parts segment recorded 16.09 million percent or the equivalent of a 13.48 percent contribution to revenue. Then, the repair service and mining contractor segments throughout 2021 posted revenues of 7.70 million US dollars, equivalent to 6.46 percent of total revenue.

Meanwhile, the heavy equipment rental segment was recorded at 4.84 million US dollars, equivalent to 4.05 percent, and the building lease was recorded at 701 thousand US dollars, equivalent to 0.59 percent of consolidated revenues.

As an effort to strengthen the structure and revenue portfolio, in 2021 Kobexindo has added business lines, namely sales, repair, and sales of spare parts for Mercedes-Benz heavy-duty trucks, as well as mining contractors.

"KOBX strives to continuously improve performance by taking advantage of the best opportunities. Be it the addition of product lines or services to strengthen our core business, namely heavy equipment sales," said Andry.

The solid revenue growth has a positive impact on the increase in Kobexindo's profit. On the gross profit account, the company managed to record 22.38 million US dollars, growing 167 percent compared to revenue in 2020 which was 8.38 million US dollars.

By the end of 2021, KOBX managed to reverse its 2020 operating profit loss from minus 5.97 million US dollars to 16.41 million US dollars. This value is obtained after deducting additional expenses from other operating income.

Profit before tax also grew significantly, from minus 9.65 million US dollars to 13.78 million US dollars. This growth boosted the profit that could be allocated to the parent owner amounting to 13.52 million US dollars, after experiencing a loss of 10.46 million US dollars in 2020.

Performance growth throughout 2021 will also have an impact on the company's cash and assets. In the statement of cash flows from operating activities, KOBEX posted receipts from customers of USD 115.90 million.

This figure grew significantly by 137 percent compared to the previous year, which was 48.89 million US dollars. Thus, the company recorded net cash from operating activities of USD 47.90 million, higher than 2020, which was minus USD 14.76 million.

"By the end of 2021, KOBX managed to increase its cash and cash equivalent position to 4.68 million US dollars from 1.71 million US dollars in 2020. Meanwhile, total assets increased 2.64 percent to 116.53 million US dollars. This provides solid fundamentals for continued sustainable growth in 2022," said Andry.

The achievement of significant net profit growth in 2021 opens up opportunities for management to distribute dividends. This is done as a form of appreciation to the shareholders for their support and trust in KOBX so far.