Directors Report
  • Dear Shareholders,

    With We should be grateful to the God Almighty, that even though the global economic conditions are uncertain and full of challenges, which also affects to the economic conditions in Indonesia, the Company can still provide quite a good performance in 2018.

    In 2018 the national economic growth reached 5.17%, lower than the target that set in the Income and Expenditure Budget of the State (APBN) 2018 which was 5.4%. This condition is mainly influenced by external factors, namely the fluctuation in the global economy of which is the sustainable impact of the economic crisis the European Union, uncertainty over United States monetary and trade war between the United States and China, which also have an impact on the Rupiah exchange rate fluctuations in 2018.

    The Company's sales in the domestic market using Rupiah currency. In 2018, the average exchange rate of Rupiah depreciates 6.05%. The weakening of the Rupiah has resulted in a decrease in the Company's sales value that recorded in financial statements in the United States Dollar. Besides that, customers also postpone their purchases while waiting for the progress of the weakening trend in world oil prices at the end of 2018.

    Although the average price of world crude oil in 2018 has increased compared to 2017, which has an effects to the Company's selling prices of products and raw materials. In 2018 the Company recorded consolidated sales of USD 350.40 million, decreased by 3.66% compared to the 2018 consolidated sales target which was set at USD 363.70 million.

    At the end of 2018, the world crude oil prices has declined quite dramatically. This decrease has resulted in a decline in product selling prices which has reduced gross profit margins. In addition, at the end of this year, the Company also has quite a lot of inventories so that the Company have to makes allowances of inventories value in accordance with accounting standards.

    The things mentioned above led to a reduction of the consolidated gross profit in 2018 which was recorded at USD 32.55 million, decreased by 21.96% compared to the gross profit targets in 2018, which was set at USD 41.71 million. Profit before tax in 2018 was recorded at USD 28.14 million, an increase of 45.05% from the target in 2018 which was recorded at USD 19.40 million. This increase of USD 8.74 million was mainly due to contributions from non-operating income, which was the land sale of subsidiary in Australia. Therefore, the profit for the year attributable to the equity holders of the parent entity (net income) in 2018 was recorded at USD 17.71 million, an increase of 20.64% compared to the target of 2018 net income of USD 14.68 million.

    Global economic growth in 2019 is projected to grow by 3.7%, lower than in 2018, this is a further impact of the economic fluctuation in 2018. In 2019 economic growth in the United States and China is predicted to experience a slowdown. Global economic conditions that still facing uncertainty have made the Indonesian government set a target for economic growth in 2019 of 5.3%, where consumption is expected still be the main driving force of the economy and the inflation remained under control in the range of +/- 3.5%.

    The Increased of household consumption along with the increased of community income and population growth provide a bright prospect for the detergent industry. The potential growth of detergent consumption in Indonesia still has considerable opportunity since detergent consumption per capita in Indonesia is still relatively lower compared to the other developed countries. Therefore, we are optimistic about the future of the Company and ready to increase production to meet domestic market demand and even increase exports.

    Indonesian bright prospect also attracts competitors from abroad to enter Indonesia market, thus the competition with import product will continue threaten the Company. Therefore the government role to protect local producers is very much expected to maintain the stability of local producers operations, one of them by pressing the fuel cost of gas for the domestic industry, which is still considered high compared with the fuel cost of gas that are enjoyed by industries in certain countries, thereby causing production costs is higher.

    In the future, we will continue focus to securing domestic product supply and increase cost efficiency. We will explore the possibility to expand our business to strengthen our position as the integrated producer and also to secure the raw material supply.

    In the implementation of the Good Corporate Governance (GCG) The Company is aware that GCG is an important part of managing Company operation to meet the expectations of the stakeholders and to increase the value for the Shareholders. Therefore the Company ensures the basic principles of GCG of transparency, accountability, responsibility, independency and fairness are implemented in all and every level of Company management. The implementation of GCG is intended to ensure that the GCG of the Company has been conducted in accordance with laws and regulations and meet with the prevailing business ethics.

    The Company has fulfilled all requirements for reports and transparent information on time to all stakeholders in accordance with prevailing laws and regulations. The Company also strives to ensure that the Company's organs such as General Shareholders Meeting, Board of Commissioners, Directors and other supporting organs such as Audit Committee, Internal Audit Unit and Corporate Secretary are well functioned to support the implementation of GCG in the Company.

    The Company's Director has held the annual General Shareholders Meeting for the year 2017 on June 26, 2018. The Company's shareholders have accepted and ratified the Directors Report on the Company's operation for the year 2017. At the annual General Shareholders Meeting there was no agenda for changes the composition of the Company's Board of Commissioners and Directors.

    As part GCG implementation, the Company also provides awareness to the surrounding environment, embodied in the form of corporate social responsibility, both in the Company's work environment by always striving to maintain the health and safety of its employees and create a comfortable and natural working environment, as well as with community environment around the Company by participating in the community activities and improve the opportunities for Indonesian children, especially children around the Company's environment to get a better education, by providing a scholarships for outstanding students.

    Last but not least, we are sincerely thankful and grateful to all Shareholders, Customers, Suppliers, Banks, Creditors, Business Partners, Employees and all stakeholders for the strong supports, cooperation and cares without which the Company would not run smoothly and have grown like now.



    -jxix

Investor Relations
  • Board of Commissioners Report
  • Directors Report
  • Management Discussion and Analysis
  • Consolidated Statements of Comprehensive Income
  • Consolidated Statements of Financial Position
  • Financial Highlights Graphics
  • Ratio Analysis
  • Business Prospect and Strategy
  • Competitive Advantage and Risk Management
  • Prospectus & Articles of Association
  • Shares, Dividends and Chronology of Company Listing
  • The Significant Laws and Regulations Changes
  • Annual Reports
  • Consolidated Financial Statements