PT AKR Corporindo Tbk (AKRA) Q2 2024 earnings summary

Executive summary

• Net profit for 1H2024 reached IDR 1,003bn, maintaining growth momentum despite sector challenges.

• Revenue for the six months ended June 30, 2024 was Rp18.65 trillion, down 6% year-over-year.

• Trading and distribution segment faced headwinds from mining permit delays and lower chemical ASP, but saw recovery in June.

• Interim dividend declared at IDR 985bn, reflecting a 98% payout ratio.

• Major investments included new subsidiaries in trading and renewable energy, and capital increases in group entities.

Financial highlights

• Total revenue for 1H2024 was IDR 18,651bn, down 6% year-over-year.

• Gross profit declined 12% to IDR 1,584bn; EBITDA fell 10% to IDR 1,424bn.

• Cash position stood at IDR 4,823bn, representing 17% of total assets.

• Operating cash flow was negative Rp853 billion, mainly due to higher tax payments and land inventory acquisition.

• Earnings per share for the period was Rp50.82, compared to Rp52.23 in the prior year.

Outlook and guidance

• FY2024 net profit growth guidance revised to 4-7% year-over-year.

• 2H2024 expected to outperform 1H2024, driven by improved mining activity and large land sales.

• Management remains optimistic on land sales pipeline and recurring income from utilities.

• Focus on industrial estate development, logistics, and trading, with ongoing capex for expansion.