Great River expects 30% net profit rise

JAKARTA (JP): Clothing producer PT Great River International, which booked a 93 percent net profit rise last year expects robust growth again in its financial performance this year.

President of the publicly listed company, Sunjoto Tanudjaja, said yesterday the production increase would raise its sales 30 percent to Rp 350 billion (US$143.44 million) from Rp 268.9 billion last year.

"Our net profit is expected to rise 36 percent to Rp 35 billion this year from Rp 25.7 billion last year," Sunjoto said after the company's shareholders annual meeting.

Great River planned to open men's shirt and tie factories as part of its long-term expansion program, he said.

The men's shirt factory, a joint venture between Great River and Van Laack Indonesia, will produce high quality shirts. The factory in Cikarang, West Java, designed with an annual capacity of 200,000 shirts, is due to open next month.

He said the company would also cooperate with Japan's tie producer, Tag, to produce ties this year.

The tie factory would be able to produce 200,000 ties, he said.

"Fifty percent will be exported to countries like Singapore, Malaysia and Germany," he said.

The company also planned to expand some of its women's underwear factory and two kidswear factories, all in Purwakarta, West Java, he said.

"We expect our production to rise 18 percent to 33 million items this year from 28 million items in 1996," he said.

He said Great River also planned to open two more children's clothing factories next year.

PT Great River is the country's leading clothing producer and distributor, with licenses to manufacture, distribute and retail the clothing and fashion items of 54 international brands.

Its market share in brand ladies' underwear including Triumph, Amo and Nina Capiona was 82 percent.

The company's brand men's shirts including Arrow, Choya, Kenzo had a 71 percent market share, he said.

Last year its net sales rose 39 percent to Rp 252.7 billion from Rp 182.3 billion in 1995, and its net profit jumped 93 percent to Rp 25.7 billion from Rp 13.3 billion.

Great River also plans to operate a Hanshin Department store in the first quarter next year. It is expected to be the largest of its kind in the country.

Sunjoto said the company would distribute Rp 9.7 billion or 38 percent of its net profit as cash dividends. It would be distributed to shareholders at Rp 25 a share, he said. (das)