In the first quarter of 2021, PT Sunson Textile Manufacturer Tbk (SSTM) achieved a profit for the year of Rp. 13.61 billion, a 333% increase compared to the first quarter of 2020, which was recorded at Rp. 3.564 billion.
So that basic earnings per share rose to Rp12, compared to the first quarter of 2020 which was recorded at Rp3. The information was conveyed by the company in its financial report in Jakarta, yesterday.
On the other hand, the sales of this clothing and luxury goods producer decreased by 25.24% to Rp. 77.19 billion. In detail, spinning products shrank 11.1% to Rp72.34 billion. Meanwhile, woven products fell 52% to Rp1.21 billion. Only other products grew 9.9% to Rp2.22 billion. However, the cost of goods sold decreased by 20.8% to Rp72.65 billion. As a result, gross profit fell 62.8% to Rp4.5 billion.
In addition, the company posted other income of Rp. 18.93 billion or a sharp jump of 170% compared to the first quarter of 2020 which was recorded at Rp. 1.009 billion. On the asset side, the accumulated assets amounted to Rp470.85 billion, or decreased by 2.4% compared to the end of 2020 which was recorded at Rp482.06 billion. Then cash flow obtained from operating activities was recorded at Rp. 24,818 billion, or decreased by 35.13% compared to the first quarter of 2020 which was recorded at Rp. 37.06 billion.
The textile company, based in Bandung, West Java, conducts business operations both domestically and for export. So far, the majority of SSTM products still supply domestic needs. Based on the Company's Articles of Association, the scope of SSTM's main activities includes business in the integrated textile industry including producing and selling yarn, fabric and other textile products as well as conducting general trading.
Just so you know, the textile industry is one of the businesses that has been significantly affected by the Covid-19 pandemic and includes PT Sunson Textile Manufacturer Tbk. The Secretary General of the Indonesian Small and Medium Industry Entrepreneurs Association, Widia Erlangga, once said that the Covid-19 pandemic in the past year has directly affected the production capacity of local manufacturers, which has declined.
Although basically most of the local textile manufacturers who previously allocated almost 70% of their total production for the export market, which was then hampered in the export process during the Covid-19 pandemic, so that their production results were forced to be diverted to meet the needs of the local market, they are still unable to afford it. to stem the increase in the price of raw materials of these types.
According to Widia, the facts on the ground reveal that the actual demand in the domestic or local market has actually decreased significantly. However, this decrease in demand still cannot be accommodated by the stock of goods produced by local manufacturers in the local or domestic market.