Kobexindo Raup Profit Growth 35.87 Percent In The Third Quarter Of 2022

JAKARTA - PT Kobexindo Tractors Tbk (KOBX), an integrated heavy equipment provider, managed to record a net profit growth attributable to owners of the parent entity of 35.87 percent or 6.36 million US dollars until the third quarter of 2022 compared to the same period last year of 4.68 million US dollars.

This profit growth cannot be separated from Kobexindo's consolidated revenue growth. Until the third quarter of 2022, revenue grew 42.8 percent to 127.78 million US dollars compared to the same period in 2021 of 89.48 million US dollars.

In more detail, the consolidated revenue is supported by four segments, namely sales of heavy equipment units, sales of spare parts, repair services and mining contractors, and rental income (heavy equipment and buildings).

"The increase in mining commodity prices into our growth catalyst until the third quarter of 2022. For the end of the year, based on performance achievements until the third quarter and stable demand for heavy equipment, to support increased coal production ahead of winter is a consideration for the company to revise rising 2022 revenue targets from 20 percent to 40 percent," said Kobexindo Tractors President Director Andry B. Limawan in his statement, quoted Monday, November 14.

This optimism is also in line with national economic growth data in the third quarter of 2022 which grew 5.72 percent, where based on the business field, the mining sector has a distribution rate of 11.47 percent of GDP and is able to grow (year on year/yoy) by 3.22 percent.

The sales segment of heavy equipment units is the main segment of KOBX, where as of the end of September 2022 managed to contribute 78.44 percent to consolidated revenue. This segment managed to achieve revenue of 100.23 million US dollars, growing 46.21 percent compared to last year's 68.55 million US dollars.

According to Andry, KOBX seeks to strengthen sales in all sectors, both mining and non-mining heavy equipment. In addition to introducing new products such as Doosan Excavator DX1000LC and Rigid Dump Truck NHL Treex TR100 in class 100 tons, the company also strengthens its diversification strategy by introducing Dynapac products for the construction segment which was recently introduced at the Mining Expo in Jakarta in mid-September.

KOBX's revenue segment outside of sales of heavy equipment units also posted a positive performance. The sales segment of spare parts grew 25.95 percent from 11.55 million US dollars in the third quarter of 2021 to 14.55 million US dollars in the third quarter of 2022, the repair service segment and mining contractor grew 33.16 percent from 6.09 million US dollars last year to 8.10 million US dollars. lastly, the rental segment recorded a growth of 48.87 percent from 3.29 million US dollars to 4.89 million US dollars at the end of September 2022.

Andry added, KOBX always strives to maximize opportunities for sustainable business growth. In addition to diversification in the product line, last year the company diversified in the service sector, namely mining contractor services.

The decision is to strengthen our main business line in the field of heavy equipment and as part of the integrated service concept that we offer, namely unit sales, providing spare parts and heavy equipment repair services.

"Thus, our customers can choose the best option and maximize their profits," he said.

Solid income and well-controlled cost of revenue have made gross profit grow 50 percent to 25.21 million US dollars when compared to last year's achievement of 16.83 million US dollars.

In the operating profit account, KOBX recorded revenue of 7.3 million US dollars, profit before income tax was recorded at 6.98 million US dollars and net profit attributable to owners of the parent entity of 6.36 million US dollars, growing 35.87 percent compared to last year's achievement of 4.68 million US dollars.

The surge in sales growth also had a positive impact on the company's cash flow increase. The position of cash equivalents grew convincingly 456 percent to 26.02 million US dollars compared to the position at the end of December 2021 (ytd) of 4.68 million US dollars.