Company Report | [ADRO] Pressure From Falling Coal Prices Continue

Coal Average Selling Price Increase

In 9M23, ADRO experienced a 13.2% YoY fall in revenue (IDR 75.3 trillion vs IDR 86.7 trillion) and a 34% decrease in net income (IDR 18.4 trillion vs IDR 27.9 trillion). Gross Profit Margin
also fell from 56.9% to 39.9% while Net Profit Margin slipped to 24.5% from 32.2%. This slide comes off the back of the steep decline in global coal prices, with the company’s ASP decreasing by 25% YoY. Inflation and increase in production volume also resulted in a 17% rise in production costs, contributing to the fall in profit margins.

Asset Growth

In 9M23, ADRO experienced a 13.2% YoY fall in revenue (IDR 75.3 trillion vs IDR 86.7 trillion) and a 34% decrease in net income (IDR 18.4 trillion vs IDR 27.9 trillion). Gross Profit Margin
also fell from 56.9% to 39.9% while Net Profit Margin slipped to 24.5% from 32.2%.