PT Pan Brothers Tbk (PBRX), one of the largest textile companies in the country, remains optimistic that sales can grow in 2021 despite a number of negative sentiments that accompany the textile industry.
The foreign market is considered to still provide positive prospects to boost the company's performance.
PBRX Corporate Secretary Iswardeni said the company targets sales to increase by 10 percent this year compared to 2019. Citing the company's financial reports, PBRX sales in the first 9 months of 2020 were recorded to still grow 6.49 percent from US $ 491.85 million to US $ 523.79 million.
The total sales throughout 2019 reached US $ 665.05 million. With a 10 percent increase target, sales in 2021 are expected to exceed US $ 731.55 million.
This optimism cannot be separated from a number of factors accompanying the textile value chain. Iswardeni said that Indonesia could get an opportunity from a shift in orders for clothing brands that were originally destined for Bangladesh or China.
“Indonesia has received a shift in orders from brands that originally came from Bangladesh or China. Those from China because of geopolitics will move permanently. Meanwhile, the displacement from Bangladesh was caused by Covid-19 which made many factories unable to fully operate, "said Iswardeni.
He said the prospect for an export-oriented garment industry such as PBRX tends to grow well as demand recovers from brand-holding companies.
"The demand for brands is increasing, they need to fill in products for their offline and online markets," he said. Despite seeing a positive prospect, it does not mean that the company is not faced with problems. Pan Brothers is still facing maturing debt with a large amount of value.
The company has a syndicated loan worth US $ 138.5 million, which should mature on January 27, 2021. PBRX also submitted an extension of the debt maturity which was then approved by the lender until February 12, 2021.
The standstill approval also contains an extension of the automatic delay until the new syndicated loan agreement is approved by both parties.