JAKARTA - PT Tirta Mahakam Resources Tbk (TIRT) posted a net sales drop of 62.24% year on year (yoy) to Rp 142.86 billion in the second quarter (Q2) of 2020. In the same period, the company also posted a net loss of Rp 214.10 billion.
According to TIRT President Director Djohan Surja Putra, the company's performance decline was caused by lower export demand due to lockdowns imposed in the company's export destinations such as India and Japan during the coronavirus (COVID-19) pandemic.
"We need to review our marketing strategies by taking into consideration market conditions due to the COVID-19 pandemic, which has disrupted distribution in a number of region and countries," Mr Putra said in an official statement received by IDNFinancials.com, Friday (28/8).
TIRT's sales in Q2 were dominated by finished goods including plywood, barecore, blockboard, polyester plywood, and polyester blockboard as well as semi-finished goods including sawn timber and veneer. The company has halted production activities due to the pandemic.
"We have suspended production activities while continuing to monitor the development of the COVID-19 pandemic as well as seeing demand projections in the next few months," Mr Putra explained.
"Therefore, at the moment we are focusing on selling existing stocks for finished and semi-finished goods. As of the end of June 2020, we had 12,000 m3 of finished goods and 188 m3 of semi-finished goods." (MS)