Focusing on Profit Improvement, ASSA Successfully Increased Net Profit in 3rd Quarter 2023

By : Nata Kesuma | Friday, November 03 2023 - 14:15 IWST

PT Adi Sarana Armada Tbk (ASSA)
PT Adi Sarana Armada Tbk (ASSA) - Jakarta, – In line with PT Adi Sarana Armada Tbk’s (ASSA) strategy to become an end-to-end logistics service provider, the Company’s performance continues to show continuous positive development.

One of them can be seen from the Company's steps to focus on improving profits which have started to show results in booking net profit increase to Rp 26.6 billion in the third quarter of 2023.

As a company in the integrated technology-based people and goods mobility ecosystem that serves retail, corporate, and other public segments, ASSA is optimistic that the transformation process currently being carried out will make the business more solid and prospective.

ASSA's business services are carried out through three main business pillars, namely: 1) Transportation (Vehicle Rental, Autopool and Driver); 2) End-to-end Logistics (ASSA Logistics which was rebranded to Cargoshare and Express Delivery – Anteraja); and 3) Used Vehicle Ecosystem through Auction (JBA) and Online-to-Offline Used Car Dealer (Caroline) under the subsidiary PT Autopedia Sukses Lestari Tbk.

Through efficiency efforts carried out during the first nine months of 2023, ASSA succeeded in reducing operational costs or OPEX by 5.4% YoY to IDR 598.4 billion from IDR 632.4 billion in the same period the previous year. Therefore, the Company was able to record operational profit growth of 8.0% YoY to IDR 273.9 billion, and EBITDA growth of 8.4% YoY to IDR 866.5 billion.

So, even though in this period the Company recorded a decline in revenue of 25.3% YoY to IDR 3.5 trillion as a consequence of the revenue consolidation from Anteraja, ASSA remains on a positive performance growth path with promising business prospects. This is also supported by ASSA's other businesses which continue to record sustainable growth, such as the car rental business, logistics, used vehicle sales, and auction business.

The corporate car rental business, which recorded sustainable business growth of 9.1% YoY to IDR 1.4 trillion, has become the main driver of the Company's revenue. The contribution of the corporate car rental business to ASSA's revenue has reached 40%, replacing Anteraja's position.

Meanwhile, used vehicle sales and the auction business recorded growth of 27.3% YoY to IDR 640.7 billion and 38.5% YoY to IDR 132.8 billion. Meanwhile, in line with ASSA's transformation into an end-to-end logistics provider, the logistics segment also recorded an increase in revenue of 27.0% YoY to IDR 166.3 billion in this period.

"The important thing that shareholders and potential investors should note is that through the business transformation process towards providing end-to-end logistics services, ASSA is stepping on the right track. The initiatives that have been planned and implemented have also shown positive results since the beginning of this year, namely operating costs that can continue to be reduced, and net profits that continue to increase from quarter to quarter," said ASSA President Director, Prodjo Sunarjanto.

Furthermore, as part of the ongoing development of the business transformation process into an end-to-end logistics provider, the Company has further strengthened its collaboration with the K24 pharmacy network company. Through its subsidiary Anteraja, the Company is committed to expanding Sameday Delivery's service area coverage to improve the K24 distribution network.

Delivery cost efficiency is Anteraja's main target in efforts to strengthen cooperation with K24 which has been in place for almost 2 years, to improve K24 customer satisfaction.

"The partnership between Anteraja and K24 is a strong foundation for our customer satisfaction, not just clients and vendors but partners who can provide a commitment to offering a superior experience," said Anteraja CEO, Handy Widiya.

Anteraja Pharma itself has been running since the first quarter of 2022. To exploit the market of the pharmaceutical industry, apart from K24, ASSA has also collaborated with MOSTRANS to develop pharma delivery. MOSTRANS is the first digital transportation platform company in Indonesia. ASSA, through its subsidiary Anteraja, helps MOSTRANS deliver medicines faster and more easily to reach customers by using Anteraja Pharma's last-mile delivery service.


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