Kobexindo's Revenue Soared By 143 Percent In Semester I 2021

Photo: Doc. Kobexindo

JAKARTA - PT Kobexindo Tractors Tbk (KOBX), a provider of integrated heavy equipment solutions, in the first six months of 2021 managed to record a surge in sales. Kobexindo's net income grew 143 percent to US$56.40 million compared to the same period in 2020, which was 23.18 million.

"In comparison, the net income for the first six months of 2021 has exceeded the achievement of the full year 2020 which was recorded at 50.97 million US dollars. This growth spike cannot be separated from the increasing demand for heavy equipment, especially mining," said the President Director of PT Kobexindo Tractors Tbk, Andry B. Limawan in his written statement, quoted Monday, August 23.

The consolidated net income figure is a combination of the net income of KOBX's business segments. The business segments owned by the company include, among others, the Heavy Equipment Unit Segment, the Spare Parts Segment, the Mining Contractor Repair, and Services Segment, and finally, the Rental Segment which consists of heavy equipment rental and building rental.

The heavy equipment unit segment in the second quarter of 2021 managed to record a net income of 43.39 million US dollars, a growth of 235 percent when compared to the achievement of the same period last year of 12.93 million US dollars.

"Heavy equipment unit is the segment with the highest contribution among other segments. This segment contributes a net revenue figure of 76.84 percent of net income on a consolidated basis. The increase in coal prices which reached 70 percent since the beginning of 2021 clearly has a positive impact on our performance," Andry B. Limawan explained.

The significant increase in sales of heavy equipment units made the contribution of this segment increase from 55.77 percent in the second quarter of 2020 to 76.84 percent in the second quarter of 2021.

The Spare Parts segment as of June 2021 posted a Net Revenue of USD 7.26 million, a growth of 25 percent compared to the same period in 2020, USD 5.80 million. This segment contributed 12.88 percent to Kobexindo's net revenue, or the second largest after the Heavy Equipment Unit Sales segment.

The third-largest segment is the Mining Contracting and Repair Services segment, this segment managed to achieve 3.10 million US dollars equivalent to 5.50 percent of consolidated net income. During the first six months, this segment grew 52.57 percent compared to the achievement of the same period in 2020, which was US$2.03 million.

"The surge in growth in this segment is also supported by the performance of subsidiaries engaged in mining contractor services. The company's newest business unit, thus adding services to support Kobexindo's revenue portfolio," added Andry B. Limawan.

The other revenue segment is the rental segment which consists of the rental of heavy equipment and buildings. The heavy equipment rental segment posted a net income of US$ 2.30 million, a 15.24 percent growth compared to the same period last year of US$ 1.97 million. This segment accounts for 4.08 percent of KOBX's consolidated net revenue.

The Building Rental segment in this year's period posted revenue of US$390,000 or equivalent to a contribution of 0.69 percent. The gross profit position in the first six months grew 203.19 percent to 11.92 million US dollars compared to last year's 3.93 million US dollars.

The growth in selling expenses, general administrative expenses, and operating expenses were still lower than gross profit growth, resulting in an operating profit of 4.96 million US dollars. This is inversely proportional to the operating loss for the same period last year which was recorded at 1.77 million US dollars.

The solid profit performance was also recorded by net profit attributable to owners of the parent entity which recorded US$3.05 million compared to the same period in 2020 which posted a net loss of US$4.04 million.

"We hope that the pandemic will end soon, so that economic activity can gradually recover and the national economic growth rate will rise again," said Andry B. Limawan.