PT Argo Pantes Tbk (ARGO) is optimistic that operational and financial performance in the next year will improve, because the government will soon impose import controls on textile products with new regulations.
Based on ARGO's Annual Public Expose material published in Jakarta, the company is currently evaluating a number of ongoing collaborations and is optimistic that next year's operational and financial performance will be better than this year's achievement.
Moreover, ARGO management stated that the government would immediately control imports of fabrics, yarns and garments.
"The import control can stimulate the textile industry (textiles and textile products), such as fabrics and threads which have been distorted by imported products,"
ARGO management admitted that the company's business strategy for next year has been prepared and is believed to be able to answer business challenges and opportunities.
The collaboration with PT Argo Manunggal Triasta and the ARGO business segment in the leasing sector has had a positive impact, although it has not been able to cover ARGO's losses.
Based on the ARGO financial report, in the third quarter of 2020 the company recorded a net loss of USD3.17 million or decreased compared to the same period in 2019 which reached USD5.58 million.
Meanwhile, ARGO's net income in the third quarter of 2020 was recorded at USD2.74 million or much lower than the same period in 2019 amounting to US $ 18.25 million.
However, ARGO was able to reduce the cost of revenue for the first nine months of this year to USD3.39 million.
In fact, in the same period last year, the cost of revenue reached USD17.09 million. Thus, ARGO recorded a gross loss per Quarter III-2020 of US $ 653.91 thousand.
“In 2020, ARGO will focus on leasing warehouses, offices and land. Another strategy this year is to reduce operational costs and manage energy optimally,” stated in the ARGO Public Expose material which is planned to be presented on December 29, 2020.**