Garment and textile issuer, PT Eratex Djaja Tbk (ERTX) is still optimistic if the sales growth target of 10 to 18 percent this year can be achieved. Eratex Corporate Secretary Djaja Juliarti Pudji said that the target is still relevant to be achieved because the customer situation is improving.
"The target is still relevant until now and there is no revision plan, because the situation at the end customers is improving," he explained.
He continued, his party will also explore non-United States (US) export markets to reduce dependence on the US. His party admitted that export sales had weakened due to a decline in global demand for denim products.
This is inseparable from the effects of the Covid-19 pandemic which has an impact on reducing travel activities and is also followed by a decrease in trade activity. From there, ERTX plans to target the European market, Japan, Australia and also the domestic market to increase sales.
ERTX hopes that export demand from the US and Japan will continue to increase as the lockdown policies relax in the two countries. "Nevertheless, the US and Japanese markets will still be our main customers in 2021," continued Juliarti.
Because it has not yet presented its financial statements for the second quarter of 2021, ERTX provides an overview of its performance in the first quarter of 2021. Juliarti explained that ERTX's revenue in the first quarter of 2021 was US$ 23.31 million or decreased 9.82 percent from US$ 25.85 million in the first quarter. I 2020.
The net profit attributable to owners of the parent company also decreased by 11.54 percent to US$ 512.70 thousand from US$ 579.59 thousand.
Until the end of 2021, ERTX will focus on strategies to maintain liquidity by optimizing working capital levels, identifying redundancy to reduce fixed costs, expanding product base to attract additional business from existing customers and expanding customer base by adding new customers from non-market markets. US to reduce dependence on the US market.
Then, it also tries to optimize operational costs by increasing operational efficiency to attract high volume customers at very sharp prices, focusing on adapting sustainability / green technology in garment manufacturing as it will help in gaining an edge over competitors, starting construction of new buildings for future expansion. , adapting sustainability technologies to reduce carbon footprints.
"Covid-19 has made the marketing environment very competitive, the main strategy is to get enough business to ensure the plant remains operational throughout the year," he said.
Regarding the absorption of capex, ERTX did not reveal the amount this year. His party said that in 2021 the main capex funds were allocated for the construction of a new laundry building for future expansion. The building is projected to be completed in 2022.
