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LISTED COMPANY - JAKARTA. PT Cerestar Indonesia Tbk, a processed wheat flour manufacturer listed on the Indonesia Stock Exchange under the code TRGU, reported a 50% sales growth in the first quarter of 2024.
The company achieved revenues of IDR 1.8 trillion, a significant increase compared to the same period last year, which stood at IDR 1.2 trillion.
However, the high cost of raw materials (wheat) in the previous period compared to the current selling price of flour, as well as the purchase of raw materials for animal feed, led to a significant increase in the cost of revenue, from IDR 1.12 trillion in the first quarter of 2023 to IDR 1.73 trillion in the first quarter of 2024.
As a result, TRGU recorded a net profit of IDR 1.7 billion in this period, compared to IDR 18.1 billion in the same period last year.
The company hopes that the significant revenue growth in the first quarter of 2024 will continue until the end of the year, thereby increasing the contribution of revenue to net profit.
“We hope that there will be improvements in product selling prices that can increase margins, even though there are currently uncertainties from both the global and our regional environment,” said Cerestar Indonesia's CEO, Indra Irawan, in a release on Monday (6/5).
In 2024, the company is wary of factors that could affect performance, such as fluctuations in the exchange rate of the Rupiah against the US dollar, and various developments related to global logistics issues that could affect the wheat supply chain.
“These factors greatly influence global commodity prices which will affect the cost of raw materials and the selling price of TRGU products. Since these factors are variables that are beyond the company's control, we will continue to closely monitor the developments of these conditions, and implement various strategies to mitigate risks in securing the availability of raw materials,” added Indra Irawan.
Meanwhile, in anticipation of an increase in demand for flour, which is evident from the significant revenue growth, the company is adding new machines to increase production capacity by 600 MT/day at the flour mill in Gresik, which is targeted to be completed in the second quarter of 2024.
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Currently, the company owns several brands of flour products intended for human consumption, including Falcon, Bakerstar, Dragonfly, and Seagull. In addition to products for human consumption, TRGU also sells animal feed ingredients under the brands Starfish and Manta.
In the animal feed production business carried out by its subsidiary PT Agristar Grain Industry, TRGU has a processing & packaging facility for animal feed ingredients with a capacity of 38,000 MT in Cilegon (Banten), as well as a Silo (wheat storage facility) with a capacity of 140,000 MT.
