HK Metals Utama’s financial statement unfolds rise in aluminium sales amid Covid-19 pandemic

The largest distributor of aluminium extrusion in Indonesia, HK Metals Utama’s revealed that its aluminium sales have grown significantly, amid the Covid-19 pandemic.

The 2020 financial statement of the company reflects that throughout the year the aluminium sales surged to Rp 264.11 billion when compared to the previous year's Rp 225.86 billion.

Concurrently, until Q1 2021, aluminium sales were still the largest contributor to the Company's revenue of Rp 67.95 billion, however, it decreased to Rp 91.44 billion, when compared to the same period last year.

On 16^th August 2021, Jodi Pujiyono, Director and Corporate Secretary of HKMU said: “The (pandemic) still has an impact, but we can consider that aluminium is a sector that is resilient to COVID-19.”

He further added: “This was also driven by social restrictions that were in effect during the pandemic. Many people spend time at home, including working from home. So there is an impetus to create a conducive atmosphere by carrying out various renovations that require aluminium.”

"It turns out that this is indeed an encouragement for those who work from home or limit their work and stay at home more. Finally, instinctively these people do a lot of renovations to their homes. Fortunately, aluminium is a component of building materials not only for new properties but also used for construction and renovations," said Jodi.

On the contrary, Jodi sees aluminium as a substitute for frame components which are usually made of wood. Therefore, the Company encourages the sales team to educate consumers that aluminium can also be used for renovations.

"We continue to encourage our sales team to educate the market not only for new properties but also for old properties that are undergoing renovations," he added.

PT HK Metals Utama Tbk (HKMU) was forced to revise its revenue target due to the ongoing COVID-19 pandemic.

In 2020, the company recorded a 53.98% decline in sales from Rp 1.22 trillion in 2019 to Rp 559.95 billion in 2020. The company also posted a loss for the year to Rp 235.70 billion in 2020.

The company also decided not to distribute dividends for the 2020 financial year.

"This year, we will not distribute dividends because the Company is still recording losses in the 2020 financial year," Jodi said in a public domain on 16^th August 2021.

PT HK Metals Utama Tbk focuses on improving the company's balance sheet in the manufacturing segment due to the impact of the COVID-19 pandemic. In addition, the company made efficient in manufacturing and existing products to keep the company's margin increasing from previous years. The company will optimize net profit in the second semester of 2021.

The company is focusing on two avenues, firstly the demand in the market, which is expected to have started to recovering and secondly the operational efficiency of the Company so that it anticipates to start booking profit.

"We are optimistic about the government's efforts to restore the national economy since mid-2020. Where economic growth in the second quarter of 2021 recorded a growth of 7%, this is a good sign for economic recovery," said Jodi.