JAKARTA – PT Inocycle Technology Group Tbk ("INOV"), a listed company in the business of recycling plastic (PET) bottle waste into Recycled Polyester Staple Fiber (Re-PSF), managed to record a net income of IDR25.7 billion or an increase of 253.6% compared to the same period in the previous year. The increase in INOV’s net income was supported by the increase in the volume of demand for the Company’s products which caused sales as of September 2021 to increase by 22.8% or a recorded IDR464.6 billion.
Victor Choi, as Director of INOV said, "Although there was a lockdown in the third quarter due to the new variant of the Covid-19 virus, but we are grateful to be able to maintain a good and positive performance. We see that the recycling industry is currently recovering, due to an increase in demand, especially for our fiber and non-woven products. It is expected that this condition will last until the end of the year and beyond, so that we can close the year with a better performance.”
By September 2021, INOV sales had been dominated by fiber sales of IDR319.5 billion, an increase of 19.5% compared to the same period in the previous year. Then non-woven sales were recorded at IDR100.7 billion, an increase of 48.3% yoy, while sales of homeware products were recorded at IDR43.4 billion or an increase of 6.0% compared to the same period in 2020.
Victor further explained that the increase in INOV's net income was not only driven by increased sales, but also supported by the Company's success in reducing production costs enabling it to increase gross margin by 21.5% in the Third Quarter of 2021. In addition, INOV also managed to significantly reduce the burden of foreign exchange differences so as to drive positive operating income. (LM)