HK Metals, Where Ricky Harun Becomes Commissioner, Loses IDR 13.7 Billion In The First Quarter Of 2022, 3 Times Increase Compared To The Previous Year

JAKARTA - A manufacturing company engaged in the iron and steel industry, PT HK Metals Utama Tbk (HKMU) recorded a decline in performance in the first quarter of 2022. The company's losses where actor Ricky Harun became Commissioner swelled to three times in the first three months of this year.

In HKMU's financial report, quoted on Monday, June 6, the company recorded sales of Rp. 120.4 billion in the first quarter of 2022. This sales decreased by 7.53 percent compared to the same period last year of Rp. 130.3 billion.

HKMU's sales during the first three months of 2022 were supported by sales in the manufacturing segment which reached Rp112 billion, down 12.9 percent compared to the first quarter of 2021 at Rp128.7 billion. Sales in this manufacturing segment included sales of aluminum of Rp. 67.2 billion, mild steel of Rp. 23.8 billion, PVC pipes of Rp. 9.75 billion, and toilets and sanitation equipment of Rp. 11.13 billion.

The next segment that supports the company's sales is trading, which increased 4-fold or 433 percent from Rp. 1.58 billion in the first quarter of 2021, to Rp. 8.44 billion in the first quarter of 2022. This sales was driven by sales of stainless steel of Rp. 5.35 billion and coil worth IDR 3.09 billion.

With this sales performance, HKMU's gross profit fell 23.18 percent to Rp. 11.6 billion, from Rp. 15.2 billion on an annual basis (year-on-year/yoy). HKMU also recorded an increase in current year's loss attributable to owners of the parent company of Rp13.7 billion, a threefold increase from Rp3.05 billion on an annual basis.

The increase in the company's net loss was due to an increase in general and administrative expenses to Rp. 13.8 billion, from Rp. 8.6 billion. In addition, HKMU's other expenses also increased from Rp3.04 billion in the first quarter of 2021 to Rp12.9 billion in the first quarter of 2022.

As of the end of March 2022, the company's total assets decreased 2.99 percent to Rp. 699.1 billion, from Rp. 720.6 billion at the end of December 2021. Likewise, total liabilities decreased to Rp. 484.9 billion as of March 31, 2022, from Rp. 491. .4 billion as of December 31, 2021.

The company's total equity also decreased from IDR 229.2 billion at the end of 2021 to IDR 214.1 billion at the end of the first quarter of 2022.