Gajah Tunggal posts gross margin of 23 percent in 2009

ERJ staff report (DS)

Jakarta, Indonesia -- PT Gajah Tunggal Tbk. managed to overcome a difficult first half of 2009, to post stable net sales for the full year of Rp 7,936 billion (Euro 642 million) compared to Rp 7,963 billion in 2008. Overall sales volumes were down in 2009, primarily due to volume decreases in the export markets. However, profits rocketed to deliver an astonishing gross margin of over 20 percent.

Gross profit in 2009 increased 60 percent to Rp. 1,822 billion (euro 147 million) from Rp 1,135 billion in 2008, as the Company benefited from lower raw material inventory costs ordered in the first part of 2009, which coincided with a higher margin product mix and favorable exchange rates. Consequently, gross margin for FY2009 surged to 23 percent and EBITDA in 2009 reached a better-than-expected US$ 142 million, up 52 percent from US$ 94 million in the prior year.

Bottom line earnings in 2009 improved significantly to Rp. 905 billion compared to a loss of Rp (625) billion in 2008.

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