PT Garuda Maintenance Facility Aero Asia Tbk. (“GMF”, “code issuer: GMFI”), the largest Maintenance Repair & Overhaul (MRO) company in Indonesia has successfully booked revenue of 439.3 MUSD during 2017, or an increase of 13% compared to 2016 revenue of 388.7 MUSD. This increase is followed by a 15% increase in net profit compared to 2016. Net profit recorded by GMF in 2016 was 44.2 MUSD (before Employee Benefit Obligation) and increased to 50.9 MUSD by 2017. In the previous year, GMF net profit according to the audited financial statements amounted to 57.7 MUSD. This is the profit of GMF with Extra Ordinary Transaction which is Employee Benefit Obligation (EBO), while without EBO, GMF earn 44,2 MUSD profit. Therefore, GMF net profit in 2017 increased by 15.3% YoY.
GMF President & CEO Iwan Joeniarto said that this achievement is a testament to the company’s commitment to shareholders and the public that GMF able to answer the challenges given in each year. “This proves that GMF is consistent to continually strive to improve its performance continuously where the company’s revenue and net profit always grow every year,” Iwan said. Iwan also added that the success of revenue growth and net profit in this year is supported by all lines of business that have contributed to its achievement. The largest revenue portion came from the aircraft component maintenance of 31% followed by Base Maintenance by 22%, line maintenance 21% and Engine Maintenance 19%. “Moreover, the company’s performance growth is also supported by the ongoing efficiency program and has been implemented by the company from year to year,” he added.
Meanwhile, the company also experienced significant asset increase in 2017 of 22% from 442.6 MUSD in 2016 to 539.2 MUSD in 2017. The increase in assets is influenced by large corporate actions where the company disposes its shares to public in 2017 and managed to raise funds of Rp 1.129 trillion. This also affects a significant increase in corporate equity by 77%. Meanwhile, in terms of cash flow in 2017 GMF also increased by 38% compared to 2016.
Maintain Operational Performance
From the operational aspect GMF also recorded 100% on three indicators namely Service Level Agreement Fulfillment, Turn Around Time and Capability & Capacity Developement. In order to support GMF operations in 2017 GMF has made various efforts to increase its capacity and capability including engaging partnerships with world-class companies. In line with the business theme in 2017, Strengthen Core Business, GMF business scale development in the main sector also succeeded by 33% increase of hangar utilization from base maintenance business line, 19% increase in manpower utilization and 36% in the machine maintenance business line, as well as 58% major machine utilization increase in the business line that became the largest revenue contributor, component maintenance. GMF President & CEO Iwan Joeniarto added that the increased utilization of investment will give the company a faster return as well. “Hangar and Major Machine are high value investments, therefore the utilization must be maximized. Currently GMF still has a wide field to increase revenue, particularly from the component maintenance and engine maintenance sector, “he said.
The brilliant operational performance in 2017 is also marked by the inclusion of number of new aircraft maintenance contracts from various domestic and foreign airlines, as well as the renewal of contracts from existing customers. In 2017 there is an increase in the volume of business coming from international customer by 5%. Iwan said that this shows the world’s credence in the quality that GMF has in providing every service. “We expect the international market to be developed by GMF to increase by 30% in 2021,” he said. In addition, he also stated that non-affiliated revenue growth reached 41% thus the revenue contribution from non-affiliated customers rise to 37% of GMF’s total revenue, and is expected to continue to increase to 55% by 2021. For the achievement in 2017, Iwan expressed his appreciation. “I am representing GMF management to thank all investors, partners, employees and all GMF stakeholders for their trust and support so GMF can deliver satisfactory performance result. We also invite all stakeholders to be with GMF to record better performance in the coming year, “said Iwan.
Corporate Target 2018
In 2018, GMF targets a significant investment growth of nearly 400% of investment realization in 2017. The investment target above 100 MUSD will be used for numbers of organic and inorganic programs that primarily focus on business expansion by adding GMF international footprint, as well as several strategic initiatives in order to increase capacity and capability of the company. This significant investment is expected not only to increase GMF revenue in the coming years, but also to improve the aircraft maintenance market that GMF can work on. In terms of revenue in 2018, GMF is targeting to grow about 15% compared to revenue achievement in 2017. With this target, the company is optimistic that net income growth in 2018 will increase by more than 10% so it can again reach double-digit number.