Double-Digit Sales Vs. Single-Digit Net Profit
AALI marked the upbeat sales of 21.7% from IDR3.24 trillion in 3Q16 into IDR3.94 trillion in 3Q17. Although the sales hit the double-digit growth, the net sales only nudged up 2.6% from IDR353 billion in 3Q16 into IDR362 billion in 3Q17. The downbeat gross margin from 24% in 3Q16 into 21% in 3Q17 was the potent driver hampering the upbeat profit.
Stepping Up Trading Coupled with Slight Margin
We oversee the efficiency in major expenses such as the downbeat raw material use expense from 46.1% in 3Q16 into 45.0% in 3Q17; the sluggish harvest and maintenance expense from 21.5% in 3Q16 into 19.1% in 3Q17. We underline that the upward trading of finished goods in 2017 constrained the gross margin.
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