Astra net profit up 46.4 percent
The Jakarta Post, Jakarta
Domestic automotive giant PT Astra International said on Friday that its unaudited net profit for the first quarter of this year rose by 46.7 percent on stronger sales from its top three divisions.
The firm's net profit surged to Rp 1.24 trillion (US$144 million) in the first quarter of this year from Rp 840 billion in the same period last year.
"Our net income rose significantly due to contributions from automotive, financial services and agribusiness division as well as gains from the sale of Pramindo investment amounting to Rp 246 billion," said Astra president Budi Setiadharma in a press statement.
He referred to PT Pramindo Ikat Nusantara, a joint-operation (KSO) partner of PT Telekomunikasi Indonesia in Sumatra, which was recently bought out by Telkom. Prior to the acquisition, Astra had a 59.5 percent stake in the firm.
The company recorded revenues of Rp 8.76 trillion in the first quarter of the year, up from Rp 7.67 trillion and its gross profit rose by 10.3 percent to Rp 1.98 trillion from Rp 1.79 trillion.
However, the gross profit margin slightly decreased to 22.6 percent from 23.3 percent as a result of the "deconsolidation" of PT Toyota Astra Motor (TAM), Toyota's distribution and production arm in Indonesia, in August last year. Astra then cut down its stake in TAM's production unit.
Astra estimates sales this year will grow by 10 percent.
During the first quarter, Astra made a further payment of its debt amounting to $80 million. As a result, the company's total outstanding debts dropped to $247 million, reducing its net debt to equity ratio to 0.02.
Astra said that sales of its cars had jumped to 47,715 units in the first three months of this year from 34,761 units a year earlier. The increase had driven the company's market share to 46 percent from 42 percent as of the end of 2003.
"The increase in the market share is a result of a significant sales of our new Toyota Avanzas and Daihatsu Xenias," said Budi.
The company's sales of Honda motorcycles rose by 18.3 percent in the first quarter to 464,422 units from 392,504 units in the same period last year. However, total market share fell to 49 percent from 57 percent.
Budi said that total national motorcycle demand had increased by 38 percent in the first quarter as a result of better economic and political conditions and the entry of a variety of lower-cost motorcycles and lower interest rates offered by financial companies.
The significant growth of motorcycle and car sales had benefited Astra's financial services company as well. The number of motorcycle financed by the company grew by 48 percent to 144,314 units from 97,493, while car financing grew by 49.6 percent to 21,124 units from 14,120.
Astra also enjoyed better performance out of its agribusiness company. Sales volume of its crude-palm oil (CPO) surged by 39.1 percent to 170,743 tons from 122,763 tons, while the average sales price of CPO rose by 8.2 percent to Rp 3,863 per kilogram from Rp 3,570.
A third of Astra's shares are owned by Singapore-based Cycle & Carriage Ltd.