Sritex (SRIL) sales to America rose 3.2 times due to trade wars

KONTAN.CO.ID – JAKARTA. Textile and garment issuer PT Sri Rejeki Isman, Tbk (SRIL) used a trade war between the United States (US) and China to increase export sales. The issuer, often called Sritex, claims sales to the US and Latin America rose around 3.2 times in the first half of 2019. SRIL Managing Director Iwan Setiawan Lukminto said, approving exports from the two regions reached 13.6% of total export sales in the first half of 2019 amounting to US$ 377.70 million. This means that SRIL’s export value reached US$ 51.35 million. This amount increased from US$ 15.98 million in the same period the previous year. “In the future, we export a lot of targets for the US market because this country is the motor of a large world economy and is looking for new suppliers for textiles and garments,” Iwan said yesterday. Until the first semester of 2019, total SRIL revenue rose 16.16% to US$ 631.64 million.

The contribution of export revenue was 59.8% and the rest was from the domestic market. Iwan increased, it is hoped export sales could increase to 62% -65% of total sales this year. At the end of 2019, the contribution of export sales to SRIL’s total revenue was 60.3%. SRIL has added its products to more than 100 countries. In detail, as of the first quarter of 2019, the Sritex market consisted of 40% of Indonesia, 37% of Asia, 9% of Europe and 7% of America. Then, the remaining 7% is the United Arab Emirates (UAE), Africa, and Australia.

SRIL sales to China are also quite large. Iwan admitted, the weakening of the Chinese economy, if it continues in the long run, will have an unfavorable impact. “We also have exports to China,” he explained. But now SRIL is still able to compete because it has better competitiveness. Until the end of this year, SRIL increased sales growth 10-15%. Then, in terms of net profit, SRIL increased 5% growth from US$ 84.5 million in 2018. In semester I-2019, SRIL also recorded a 12.29% increase in net profit annually resulting in US$ 63.25 million.