Sritex is increasingly shining in the European market
Jakarta, Marketmover – The sales of PT Sri Rejeki Isman Tbk (Sritex) in the European market are increasingly shining with an incremental income of US $ 57.42 million in semester I-2019. Understandably, in the same period in 2018, sales from the European market were recorded at US $ 36.58 million. It means exports to Europe jumped by about 57%.
Practically, the contribution of sales from Europe became the muscle of Sritex’s export earnings outside of Asian countries. Check it out. As of the end of June 2019, Sritex’s total export sales were US $ 377.69 million, while contributions from other markets, namely the United States and Latin America were US $ 51.35 million. Then, the United Arab Emirates and Africa were US $ 39.50 million and Australia US $ 1 million.
The trend of sales from the European market had actually been seen in revenue during 2018 compared to 2017. At that time, the total export sales to Europe were US $ respectively. 98.33 million and US $ 52.34 million.
For the export business to Europe, one of them, Sritex supplies German military uniforms. In fact, Sritex pocketed certification to supply military uniforms for other NATO countries.
The fattest export market for Sritex is actually still from Asian countries. In the first semester of 2019, from the Asian market, Sritex pocketed sales of US $ 228.40 million, equivalent to 60.47% of total exports.
Similar to the European market, Sritex noted an increase in exports for the Asian market. Understandably, as of the end of June 2018, the contribution of exports to Asia was still US $ 215.48 million. That is, exports to the Asian market rose by about 6%.
Export sales reaching more than 100 countries turned out to dominate Sritex sales in the first half of 2019, which was US $ 377.69 million or equivalent to 59.71% of the total sales of the textile skipper. Understandably, in that period, domestic sales were recorded at US $ 254.74 million.
Sritex still relied on exports in the first half of 2019. Of the total revenue for the period, namely US $ 632.44 million, US $ 377.69 million of which came from exports. Exports accounted for around 60% of the total sales of Sritex as of the end of June 2019.
Export contributions ballooned, considering that in the first semester of 2018, export contributions were around 54.15% with a value of US $ 291.77 million. At that time, the total revenue of Sritex was recorded at US $ 538.76 million.
Relying on Spinning
Sritex, which absorbed around 18 thousand workers, turned out to still rely on sales from spinning in the first half of 2019, which was US $ 254.12 million. That figure is weaker when compared to the same period in 2018 which amounted to US $ 254.40 million.
However, even though it weakened slightly in reaping revenue, the spinning line actually recorded an increase in gross profit. Imagine, if by the end of June 2018, gross profit from this amounted to US $ 24.26 million, now it had jumped to US $ 29.14 million.
In the first six months of 2019, the contribution of spinning lines was 40.18% given the total sales of Sritex at that time US $ 632.44 million. The contribution declined, bearing in mind that in the same period in 2018 the spinning line contribution was 47.21% of the total revenue of US $ 538.76 million.
The second-largest contributor to Sritex sales in the first semester of 2019 was the garment sales line of US $ 168, 93 million. Other sources of income came from the sale of finishing cloth of US $ 168.84 million and weaving of US $ 40.54 million.
The garment sales line incremented an increase compared to the first six months of 2018, bearing in mind that at that time it was still sitting at US $ 121, 54 million. Likewise in the finishing sector, as of the end of June 2018, the line only recorded US $ 121.36 million.
Specifically the weaving actually declined, considering that at the end of June 2018, it was still entrenched at US $ 41.44 million.
Today, Sritex concentrated in part the size of the operation is 79 hectares in Sukoharjo, Central Java. With four production lines ranging from spinning, weaving, printing, dyeing and garment. The company became an integrated garment-textile company with high-quality control standards.
Sritex began to take the floor on the Indonesia Stock Exchange (IDX) in 2013 with the SRIL stock code. Throughout October 2019, SRIL shares closed lower from Rp 314 to Rp 282 on Thursday (10/10/2019). (mm1)