JAKARTA - Garment manufacturer, PT Ricky Putra Globalindo Tbk (RICY) is optimistic that the company will benefit from the weakening of the rupiah by boosting export sales.
Tirta Heru Citra, Director of Ricky Putra Globalindo said that every year RICY exports grow by 10-15 %. Although, said Tirta, the efforts to increase exports were also confronted with the challenge of rising garment raw materials price.
"We import cotton from other countries, because there is no cotton that can be used for our raw material," said Tirta.
Looking at the financial statements of the first semester of 2018, RICY booked an increase in raw material purchases by 57% from Rp 348 billion in the first half of 2017 to Rp 547 billion in the first half of this year. The net sales continued to grow high at 29% to Rp 941 billion.
Although the cost of goods sold rose 26% from Rp 741 billion to Rp 941 billion, RICY's gross profit only rose 12.5% to Rp 162 billion. in the first semester of this year, RICY suffered an exchange loss of Rp 22 billion, while in the same period the previous year it recorded a foreign exchange profit of Rp 2.7 billion.
As of June 2018, local sales still dominated the revenue by 85%, with majority of garment underwear products valued at Rp 231 billion, up by 8.9% compared to the same period last year of Rp 212 billion.
While the majority of exports are underwear as much as Rp 133 billion, of the total exports valued at Rp 149 billion. (AM/LM)