Sustainable Business Continuity
Kabupaten Gresik, September 26, 2023 – PT Nusa Palapa Gemilang Tbk (Stock Code: “NPGF” atau “Perseroan”) would like to provide clarification on various questions regarding the Company's business continuity and future prospects. Since September 2022, the Company has begun construction of a new factory located in Panceng District, Gresik, consisting of a factory building, two sets of more efficient dry granulation machines, and other supporting facilities, with a total investment of IDR 60 billion. The construction process was completed in July 2023. The factory construction in Gresik Regency is expected to have a positive impact on the local economy by creating job opportunities for the local community.
The Company has been operating commercially and receiving fertilizer orders from several corporate customers (Business-to-Business or "B2B"). Currently, these fertilizer orders are in the final stages of production and delivery. Therefore, the Company is targeted to reach full capacity by the third quarter of this year, with a total order value of approximately IDR 30 billion. Furthermore, to ensure business continuity and revenue growth, the Company will implement various strategies, one of which is through market development. The Company believes there is still ample room for growth, particularly in the free market for both plantation and non-plantation segments, for both oil palm and horticultural crops. Going forward, the Company will, in addition to implementing a B2B business model, also develop markets with a Business-to-Consumer (B2C) business model as a manifestation of its commitment to maintaining long-term business continuity, ensuring competitiveness and adaptability to industry dynamics.
The Company has announced its Interim Consolidated Financial Statements for the six-month periods ended June 30, 2023, and June 30, 2022. As of June 30, 2023, the Company's total liabilities reached IDR 32.2 billion, an 82% decrease compared to IDR 195.7 billion reported on June 30, 2022. This significant decrease in liabilities was driven by the repayment of excessive bank debt, which had burdened the Company's net profit performance. A comparison of the Company's financial condition, based on the Debt-to-Equity Ratio (DER) of 0.17 and 0.85 as of June 30, 2023, and June 30, 2022, indicates a decrease in financial risk and an improving condition. The Company strives to continuously improve productivity and profitability by managing costs more efficiently and aligning available funds with production capacity at the new plant, ensuring that the Company does not incur an increase in its cost of capital.
About PT Nusa Palapa Gemilang Tbk
The Company has been operating since 2001 and is engaged in the production, marketing, and trading of primary macronutrient compound fertilizers. In 2023, PT Nusa Palapa Gemilang Tbk produced NPK fertilizer using the dry granulation system. NPGF was publicly listed on the Indonesia Stock Exchange on April 14, 2021.
For further information, please contact
Corporate Secretary
T +6231 8485665 | F +6231 8495095
corporatesecretary@ptnpg.com
www.ptnpg.com
This press release has been prepared by PT Nusa Palapa Gemilang Tbk. ("NPGF") and is being circulated for general information purposes only and does not constitute a recommendation regarding NPGF shares. NPGF shall not be liable for any consequences arising from reliance on the whole or any part of the contents of this press release and neither NPGF nor its affiliated Companies and their respective employees and agents accept any liability for any errors, omissions or inaccuracies that may arise.
The Company has been operating commercially and receiving fertilizer orders from several corporate customers (Business-to-Business or "B2B"). Currently, these fertilizer orders are in the final stages of production and delivery. Therefore, the Company is targeted to reach full capacity by the third quarter of this year, with a total order value of approximately IDR 30 billion. Furthermore, to ensure business continuity and revenue growth, the Company will implement various strategies, one of which is through market development. The Company believes there is still ample room for growth, particularly in the free market for both plantation and non-plantation segments, for both oil palm and horticultural crops. Going forward, the Company will, in addition to implementing a B2B business model, also develop markets with a Business-to-Consumer (B2C) business model as a manifestation of its commitment to maintaining long-term business continuity, ensuring competitiveness and adaptability to industry dynamics.
The Company has announced its Interim Consolidated Financial Statements for the six-month periods ended June 30, 2023, and June 30, 2022. As of June 30, 2023, the Company's total liabilities reached IDR 32.2 billion, an 82% decrease compared to IDR 195.7 billion reported on June 30, 2022. This significant decrease in liabilities was driven by the repayment of excessive bank debt, which had burdened the Company's net profit performance. A comparison of the Company's financial condition, based on the Debt-to-Equity Ratio (DER) of 0.17 and 0.85 as of June 30, 2023, and June 30, 2022, indicates a decrease in financial risk and an improving condition. The Company strives to continuously improve productivity and profitability by managing costs more efficiently and aligning available funds with production capacity at the new plant, ensuring that the Company does not incur an increase in its cost of capital.
About PT Nusa Palapa Gemilang Tbk
The Company has been operating since 2001 and is engaged in the production, marketing, and trading of primary macronutrient compound fertilizers. In 2023, PT Nusa Palapa Gemilang Tbk produced NPK fertilizer using the dry granulation system. NPGF was publicly listed on the Indonesia Stock Exchange on April 14, 2021.
For further information, please contact
Corporate Secretary
T +6231 8485665 | F +6231 8495095
corporatesecretary@ptnpg.com
www.ptnpg.com
This press release has been prepared by PT Nusa Palapa Gemilang Tbk. ("NPGF") and is being circulated for general information purposes only and does not constitute a recommendation regarding NPGF shares. NPGF shall not be liable for any consequences arising from reliance on the whole or any part of the contents of this press release and neither NPGF nor its affiliated Companies and their respective employees and agents accept any liability for any errors, omissions or inaccuracies that may arise.
