FajarPaper's 2016 net sales climbed 18% to Rp 5,875 billion ($441 million) driven by higher prices, with net income boosted by over 350% to Rp 778 billion ($58 million). Earnings before interest, tax, depreciation and amortisation (EBITDA) improved by 190% to Rp 1,190 billion ($89 million).

Packaging

FajarPaper net sales climbed 18% in 2016

FajarPaper trading as PT Fajar Surya Wisesa Tbk announced a record breaking profit performance, on the back of strong sales from a highly successful move into high quality lightweight packaging papers.

2016 net sales climbed 18% to Rp 5,875 billion ($441 million) driven by higher prices, with net income boosted by over 350% to Rp 778 billion ($58 million).

Substantial demand for the new range, as well as established products, coupled with lower raw materials usage, reflecting the lightweight specification of the new range, plus well contained factory overheads were the main factors to boost gross profit margins from 8% to 20%.

Operating expenses were well controlled with the focus of sales activity being to serve the domestic market. Earnings before interest, tax, depreciation and amortisation (EBITDA) improved by 190% to Rp 1,190 billion ($89 million).

Despite a degree of uncertainty in general over consumer spending power amidst slow economic growth in 2016, Yustinus Y. Kusumah, President Director of FajarPaper remained upbeat. “The encouraging reception for our new products validates the commitment we made in the previous year to upgrade product specifications and pursue further capacity expansion. The substantial turnaround in our financial performance is the result of these strategic decisions,” he said.

FajarPaper is one of the largest packaging paper manufacturer in Indonesia with a current capacity of 1.55 million tonnes per year, currently running with existing 6 paper machines, and uses 100% recycled paper as raw material.