Demand For Heavy Equipment Recovers, Kobexindo's Gross Profit Grows 107 Percent

JAKARTA - PT Kobexindo Tractors Tbk managed to book a gross profit of 5.01 million US dollars in the first quarter of 2021. The achievement of this heavy equipment provider company increased 107 percent compared to the same period last year of 2.42 million US dollars.

The soaring coal price since the fourth quarter of 2020 is a positive catalyst for our growth," said PT Kobexindo Tractors Tbk President Director Andry B. Limawan in a statement received, Tuesday, June 8.

In the first three months, the issuer codenamed KOBX managed to record revenue growth of 73% percent to USD 22.56 million compared to the same period in 2020, which was USD 13.01 million.

The revenue is supported by the four business segments owned by the company, namely Sales Segment (heavy mining and non-mining equipment), Service, Spare Parts, and Rental (heavy equipment and office space).

The heavy equipment sales segment posted revenue of US$16.2 million or contributed 72 percent to the Company's consolidated revenue or the main contributor to the company's revenue.

The maintenance/repair service segment recorded revenue of 1.67 million US dollars, this segment contributed 7 percent to the company's consolidated revenue. Then the spare parts sales segment amounted to 3.3 million US dollars, or equivalent to a 15 percent contribution.

"And lastly, the rental segment amounted to 1.36 million US dollars or equivalent to a 6 percent contribution to Kobexindo's consolidated revenue," said Andry.

Revenue growth was higher than the growth in the cost of revenue account which grew 65.63 percent to 17.55 million US dollars. So that gross profit was recorded to grow 107.26 percent to 5.01 million US dollars.

The company has also implemented strict controls over expense accounts since the last pandemic, such as selling expense accounts which only grew 11 percent to 1.09 million US dollars, general and administrative expenses grew 1.78 percent to 1.79 million US dollars, and others. so that in the first three months KOBX managed to book a positive operating profit after last year's negative operating profit.

In the first quarter of 2021, the company posted an operating profit of 1.96 million US dollars, after last year's loss of 722.15 US dollars. Finally, comprehensive net profit also jumped to 690.22 US dollars compared to the same period last year, minus 3.07 million US dollars.

Optimizing Opportunities

KOBX always strives to improve performance by strengthening its product/service portfolio. So that the company can always optimize existing opportunities.

To strengthen the mining heavy equipment segment, Kobexindo through its subsidiary, PT Eurotruk Transindo has officially become a distributor of heavy-duty trucks (heavy-duty trucks) Mercedes Benz AXOR.

To support sales and after-sales including repair services and spare parts availability, Eurotruk has opened branch offices in Banjarmasin and Samarinda, Kalimantan.

KOBX also continues to optimize sales of non-mining heavy equipment through its superior products such as the Jungheinrich electric forklift and the Hako sweeper machine. In fact, throughout 2020, the non-mining segment managed to grow and make a positive contribution when sales of heavy mining equipment weakened.

"KOBX will continue to optimize opportunities for sales of heavy equipment or services related to mining and heavy equipment for sustainable business growth and provide added value for shareholders," concluded Andry.