JAKARTA – PT Cerestar Indonesia Tbk (TRGU) recorded 50% year-on-year (yoy) surge in its revenue to IDR 1.8 trillion at the end of Q1 2024. However, its net profit reportedly shifted down 90.74% yoy.

The significant slippage of the net profit resulted from high purchase prices of raw materials, thus bringing costs of sales up to IDR 1.73 trillion from IDR 1.12 trillion, or swelling 54% yoy.

In addition, based on Financial Report Q1 2024 of TRGU, there was also a loss on foreign exchange of IDR 3.06 billion, thus hindering the company’s growth, compared to gains on foreign exchange of IDR 8.84 billion at the end of the first quarter of 2023.

“In 2024, the Company is alert to things that could affect performance, such as fluctuations in the Rupiah exchange rate against the US dollar, as well as various developments related to global logistics issues that could affect the wheat supply chain,” explained the management further in the press release today (6/5).

Due to these expenses and costs, TRGU’s net profit went significantly down by up to 90% yoy, from IDR 18.1 billion to only IDR 1.7 billion. “We hope that onwards there will be improvements in selling prices which will increase margins,” added Indra Irawan, President Director of Cerestar Indonesia.

As mentioned by IDNFinancials before, TRGU plans to increase its production capacity by up to 600 MT/day through extra machineries in Gresik facility, which are projected to be fully installed in Q2 2024.

“With the addition of these new machines, the total capacity of the wheat flour mills in Gresik will increase from 1,600 MT/day to 2,200 MT/day,” the management concluded. (ZH)