JAKARTA - Despite its plummeting profit in Q3 2023, PT Cerestar Indonesia Tbk (TRGU) remains confident in its revenue, aiming to score IDR 4.4 trillion of sales at most at the end of this year.

As published before on IDNFinancials, TRGU scored 54.1% year-on-year (yoy) surge in sales until September 2023. It shifted drastically from IDR 2.55 trillion to IDR 3.93 trillion.

During Annual Public Expose 2023 of Cerestar Indonesia today (13/12), it is revealed that animal feed business line already generated over IDR 900 billion to total revenue, despite its factory has only been set up and ready to operate since Q3 2023.

"Since January 2023 until the third quarter, we have made advanced sales using a leased factory," claimed the Board of Directors of TRGU today.

Despite its skyrocketing revenue, TRGU suffered a downturn in its net profit in Q3 2023. Net profit tumbled down from IDR 72 billion to IDR 5 billion, down by 93.5% yoy.

According to the board of directors, this drop is caused by the sudden decline of selling price within the industry, which is quicker than the decline of raw material price.

"Buyers use mark-to-market method, meaning that they insisted to pay according to the recently declining market price. However, the supply that we sold, which was stored in silo, had been bought during the peak rate," they explained.

TRGU reportedly faced a brief crisis from March to July 2022 due to Russia-Ukraine war, which triggered a price surge in its raw materials: imported wheat.

"For now, we focus our import from Russia, Australia, Canada and US, as well as South America, such as Argentina," they further revealed. (ZH)