PT Trisula Textile Industries Tbk (BELL) is optimistic that the company's sales can grow 22% this year even though demand for garments and textiles on a global scale has decreased. Main Director of BELL Karsongno Wongso Djaja said, to achieve the growth target this year, the company has four strategies. The first strategy relates to operational aspects, namely increasing productivity and production quality through machine rejuvenation, smart monitoring, and employee multitasking. The second strategy, the company is looking for alternatives to substitute raw materials and auxiliary materials that are more competitive with equal quality.
Third, BELL added a point of sale (POS) in the retail segment by establishing new partnerships with several department stores.
Furthermore, the fourth strategy relates to product development, in which the company continues to develop new products, both in the textile and retail segments.
Why can we survive in this unfavorable condition? One of them is the role of the product development strategy, in which we try to meet demand both for the local market and partly for the export market, although it is still small, said Karsongno at the Public Expose which was held virtually, Monday, April 10, 2023.
Karsongno said that this year his party will continue to prioritize product development improvement.
BELL strives to fulfill production according to customer demand, both for daily needs and for uniforms for agencies such as State-Owned Enterprises (BUMN), Indonesian National Armed Forces (TNI), and Indonesian National Police (Polri).
In 2023, we also target to increase sales from the production of fire-resistant fabrics. We are also developing recycled fabrics. We also offer these items for the Republic of Indonesia army. This is related to the commander-in-chief's visit to Trisula Textile, added Karsongno.
BELL targets to add POS for retail brands JOBB and Jack Nicklaus in department stores and own stores, and the company will specialize in boosting sales through offering products in strategic places.
To encourage the implementation of the company's strategy, BELL has prepared capital expenditure (capex) funds for this year of IDR 9 billion, the funds coming from the company's internal cash and bank loans.
On the same occasion, Karsongno said that his party acknowledged that currently the demand for garments and textiles on an international scale was experiencing a decline. Therefore, the company is also focusing on the domestic market because the market is still quite positive.
Moreover, supported by government policies that strongly support the domestic economy, and to anticipate all of this, we also have the Domestic Component Level (TKDN) certification so that we can meet the needs of the uniforms of agencies or BUMN in our country, said Karsongno .
To note, in 2022, BELL recorded an 8% increase in sales from IDR 428 billion in 2021 to IDR 462 billion in 2022.
Then, the company's gross profit increased 17% from IDR 120 billion to IDR 140 billion, operating profit grew 32% from IDR 22 billion to IDR 29 billion, while net profit grew 9% from IDR 2 billion to IDR 3 billion.
BELL assets increased 0.38% from IDR 524 billion in 2021 to IDR 526 billion in 2022 while liabilities decreased 0.37% from IDR 265 billion to IDR 264 billion. With these developments, BELL's equity increased by 0.38% from IDR 260 billion to IDR 261 billion.
BELL's debt-to-equity ratio increased from 0.88 to 0.94. On the other hand, the return on assets (ROA) and return on equity (ROE) were recorded at 0.85% and 1.71%, respectively.
Along with the easing of the Community Activity Restrictions (PPKM), BELL's sales in the local segment increased by 9% while exports decreased by 11% compared to the previous year.
With these developments, 96% of BELL sales in 2022 will come from the local segment while 4% will come from the export segment.
