PT. Garuda Indonesia (Persero) (GIAA) Q4 2023 earnings summary

Executive summary

• Revenue reached $2.937B in FY2023, up ~40% YoY; net income was $252.0M, while the audit highlighted material uncertainty over going concern.

• The FY2023 result included a $198M impairment reversal and other restructuring-related and bond-retirement gains; FY2022 earnings included much larger debt-restructuring gains.

Financial highlights

• Operating revenue was $2.937B vs. $2.100B in 2022; scheduled airline revenue was $2.378B, non-scheduled $288.0M and other revenue $270.6M.

• Profit before tax was $234.6M vs. $3.935B; net income was $252.0M vs. $3.737B.

• Basic/diluted EPS was $0.00273 vs. $0.14145; attributable profit was $250.0M vs. $3.738B.

• Net cash from operations was $218.9M vs. $261.4M; cash and cash equivalents ended FY2023 at $289.8M vs. $521.7M.

• Other income, net, was $344.8M, including $198.0M impairment reversal and $63.8M bond-retirement gain; a $47.8M gain on payment-term restructuring was also recorded.

Outlook and guidance

• Management’s plan prioritizes domestic and selected profitable international routes, fleet optimization, cargo, Citilink flight-planning synergies, dynamic pricing, unbundling, cost efficiency and loyalty/ancillary revenue.

• Fleet plans reduce the 210-aircraft baseline to 134 in 2019, then gradually increase to 176 by 2026.

• The financial plan includes additional equity and strategic-partner funding, early bond and sukuk retirement, and a sinking fund established at BNI, BRI, Mandiri and BTN.