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Solid Performance of ERAA in 2018 with Revenue growth of 43% to IDR 34.7 trillion and Net Profit increased 150% to IDR 850.1 billion

05.04.2019
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Jakarta, April 5th, 2019 – PT Erajaya Swasembada Tbk. (IDX Ticker Code: ERAA. IJ), one of Indonesia’s biggest handset distributor and retailer in Indonesia, released its audited financial statements for full year 2018 (FY 2018), reported a strong performance of IDR 34.7 trillion sales or 43% growth Year-on-Year (YoY) as a result of higher sales through aggressive penetration of the market in Indonesia.

Some of the key highlights of ERAA’s FY 2018 financial performance are as follows:

  • Sales increased by 43% YoY from IDR 24.2 trillion in 2017 to IDR 34.7 trillion in 2018, driven by the increase of sales volume of Smartphone products.
  • Net Profit grew by 150% YoY from IDR 339.5 billion in 2017 to IDR 850.1 billion in 2018.
  • Gross Margin improved to 9.1% while Net Margin reached 2.5% in 2018 as a result of better products portfolio ERAA introduced to the market

Budiarto Halim, President Director of PT Erajaya Swasembada Tbk, stated that, ”We are happy to announce another good year of ERAA performance in 2018 with 43% growth in Sales and 150% growth in Net Profit. This is an excellent performance considering the relatively soft market conditions last year. We saw a very positive momentum in smartphone sales throughout 2018 period. At this moment, smartphones and gadgets are considered as part of customer’s daily life activities. In addition, more and more customers are getting attracted with a numbers of affordable smartphones yet provide value for money quality.”

Hasan Aula, the CEO of ERAA added “In order for ERAA to grow its business scale and seize the demand opportunities of the market, our working capital, particularly Inventory was elevated to higher levels towards the end of 2018. As a case in point, our average inventory turnover days has increased to above 50 days, which resulted in a higher cash conversion cycle. Consequently our bank loan levels also increased. We, in the Management of ERAA, consider this matter of utmost priority. In fact, currently we are in the middle of taking action steps and changes together with our principals and partners to achieve improvements going forward.”