Profits Slump at Gajah Tunggal in 2007

Indonesia’s PT Gajah Tunggal Tbk and the company’s subsidiaries achieved a net profit of IDR72.649 billion (£3.87 million) during the January to June 2007 half-year period. This figure is a drop of more than 42 per cent on the IDR126.102 billion (£6.7 million) profit enjoyed during the same period of 2006. This drop in profit came despite an 21.3 per cent increase in net sales, up from IDR2.633 trillion (£141.4 million) to IDR 3.218 trillion (£171.6 million) and operating profits that were 60.61 per cent higher at IDR 339.538 billion (£18.1 million).

The explanation given by Gajah Tunggal management for the reduced profit indicated that the sluggish 2007 result resulted from a foreign exchange loss that reached IDR14.262 billion (£760,000) and an interest expense valued at IDR181.048 billion (£9.6 million).