JAKARTA - PT Darmi Bersaudara Tbk (KAYU) is optimistic that its sales and net profit in the third quarter of 2019 will grow positively after suffering pressure throughout the first half of the year.
According to KAYU Independent Director Lie Kurniawan, the company’s negative performance in 1H was caused by customers in India that held back from increasing sales. The Indian market contributed Rp 10.17 billion or 84.82% to the company’s total sales during the period.
“The primary factors were winter in India and the 2019 general election in the country, which caused most business players to hold back,” said Mr Kurniawan as quoted by Bisnis.com, Monday (16/9).
Nevertheless, KAYU is confident its performance in Q3 will improve as business in India stabilises after the country’s general election. Mr Kurniawan estimates that the company’s growth in Q3 will be on track with its projection at the start of the year, which targets sales increase of 70.12% year on year (yoy) to Rp 37.62 billion and net profit growth of 100% yoy to Rp 3.6 billion.
“The main catalyst lies on Indian business players who have started working normally after the election, and thus our performance in the third quarter will be on track,” said Mr Kurniawan. (MS)