KPAS Profit Slumps Amid as Competition Intensifies

By Editorial Team 13/09/2019
Summary

PT Cottonindo Ariesta Tbk booked Rp 34.55 billion revenue in the first half of 2019, 5.6 percent lower year-on-year (YoY). Cottonindo Corporate Secretary Johan Kurniawan said the intense competition in the beauty cotton products was behind the decline, while the beauty market is expected to have moderate growth. Reflecting on current achievements, the KPAS stock-coded company sees the performance to grow flat this year by only targeting maintained revenue, revised from a target of 10-15 percent growth by the end of this year.

The KPAS has so far done efficiency, citing the decrease in the cost of goods sold by 8.8 percent YoY to Rp 20.85 billion in the first semester. However, KPAS scooped 40 percent lower to Rp 335 million profits in the first half of 2019 from Rp 562 million a year earlier, mainly due to swelling miscellaneous expenses. To boost profits, KPAS had entered the premium beauty cotton market targeting young women.

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