2018 Performance Achievement: GMF Achieves US$ 470 Million Revenue

Jakarta, February 19, 2017 PT Garuda Maintenance Facility Aero Asia Tbk. (“GMF”, “issuer code: GMFI”), a Maintenance Repair & Overhaul (MRO) Company, booked US$ 470 Million operational revenue during 2018, or increased by 7% compared to 2017 revenue of US$ 439 Million. The group contributed 55% of the revenue while non-group contributed 45%, where the revenue increase from non-group was fairly significant compared to 36% at 2017. GMF’s President Director, Iwan Joeniarto said that the non-group’s revenue increase showed GMF’s consistency has gained confidence from non-group airlines. “We continue to intensify revenue from non-group as proof that we have quality and competitiveness in the MRO industry, both domestic and abroad,” said Iwan. Besides, in 2018, GMF’s performance achievements display business shift in accordance with the company’s work plan. This can be seen from the revenue growth of aircraft engine maintenance segment, which grew significantly by 61.5% Year on Year (YoY). GMF recorded revenue of US $ 116.5 million from aircraft engine maintenance. Also, the aircraft component segment also experienced 5.6% YoY growth.


Meanwhile, in the 2018 fiscal year, GMF managed to earn a US$ 30.7 Million net profit. Decrease in profit caused by increase in subcontracted material cost and other financial cost, due to the depreciation of US$ against Rupiah that affects GMF’s domestic customers. Subcontracted material costs increased along with aircraft engine segment’s portion growth. “In the future, we will improve the aircraft engines in-house capabilities to increase profit margin. In addition, we will make alternative payment methods to provide convenience for GMF’s customers, “explained Iwan.


On the other hand, GMF recorded 99.36% Service Level Agreement operational achievements from customers that performed total solution maintenance. Iwan also added that GMF is committed to continue raising customer satisfaction with various improvement programs such as improving HR competencies, quality, planning and communication manners between GMF and its customers. In terms of business development, in 2018, GMF signed several strategic cooperation agreements such as Strategic Partnership Agreement with AFI KLM E&M to develop capacity and capability for airframe, engine and component maintenance, and also joint marketing. There was also signing of Operational Cooperation Amendment with Merpati Maintenance Facility (MMF) for aircraft maintenance.


At the end of 2018, GMF had also initiated the establishment of GMF subsidiaries, namely Garuda Daya Pratama Sejahtera (GDPS) and Garuda Energi Logistik and Komersil (GELK). GDPS a company which provide highly qualified human resources for aviation industry was officially established on January 25, 2019, while GELK a company deals in aircraft spareparts & general trading, waste management, fuel distribution, engine & APU lease, and electricity was officially established on February 6, 2019. With GELK, material management is expected to be more efficient in order to save GMF’s material cost and increase profit margins.


Iwan also said, 2018 was a significant year for GMF. This is evident from GMF’s international customers which contribute 25% of total revenue. This portion of income had increased by 110% from previous year. Armed with good experience from overseas customers, in 2019, the target of international customers’ contribution will increase by 39% to reach 31% of total revenue. Iwan added that 2019 will be a promising year for GMF’s continuous growth. There will be numerous corporate actions and business development this year. GMF will also accelerate implementation of strategic partnerships with AFI KLM to increase capacity and capability.


GMF also continues to make various efforts to add contracts from GMF’s Total Solution customers, to form subsidiaries and various strategic partnerships. “These efforts are carried out to achieve GMF’s vision of becoming the Top 10 MRO in the World. The entire GMF management is committed to provide the best service for customers through innovations and excellent service, as well as bring pride to the nation’s name by developing domestic aviation industry,” Iwan concluded.