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3M22 Sales Order Reached IDR2.1 trillion
Sidoarjo (4/8) – Largest vertically integrated wooden products manufacturer in Indonesia, PT Integra Indocabinet Tbk (WOOD IJ) recorded 3M22 on hand sales order reached IDR2.1 trillion.
In the 1Q22, the Company estimated to book a significant higher revenue recognition of at least 50% YoY growth compare to the same period last year. Typically, 1Q should be the weakest quarter but the Company was still able to deliver strong YoY growth in 1Q22 despite its high base in 1Q21. Our strong revenue growth contribution coming from the export sales of both furniture and building component, particularly to the US market. In 2022FY, the Company optimistic to book stronger sales revenue growth than its target of at least 25% YoY, hence aim to again beat its sales target.
Despite the recent challenges of high inflation and potentially higher rate hikes in the US, Integra remain optimistic that the event would not negatively impact its export to US market. As the largest importer of wooden furniture in the world, US import reached approximately USD17bn (grew by 23.3% YoY) in 2021FY with Indonesia contributed 5.1% of its total import. Among other major wooden furniture exporting countries, Indonesia exports booked the highest export growth to US of about 37.4% YoY.
The current shipping-container shortage and port congestion that led to supply chain disruption would be an issue in terms of raw materials availability and prices for producers that import most of their raw materials (timber). On the other hand, Integra source its raw materials domestically which has abundant supply of timber, hence the Company could offer more competitive pricing compare to its competitors from other countries.
Additionally, the Company able to smooth out its shipment by assisting our buyers to get more space and more competitive terms. As one of the largest exporters of furniture and building component in Indonesia, we are able to get more space and competitive shipping rate for our buyers. Therefore, this condition blesses us with additional competitive advantage.
As of 2021FY, Integra wooden furniture export accounted for 14-15% of total Indonesia export to US. Despite the small market share of Indonesia export of wooden furniture to US market, the Company sees this as an opportunity. Integra with its competitive advantage in terms of abundant raw materials availability domestically which lead to more competitive prices, would have huge opportunity to expand its market share. Instead of expecting US furniture import growth, the Company aim to expand its market share by taking over other competitor countries by utilizing the Company’s competitive advantage in raw materials sourcing and prices.
Given its small market share in US market and competitive prices, Integra as one of the largest furniture and building component exporter would have extensive opportunity to expand its market share in US market, the largest importing country.
About PT Integra Indocabinet Tbk:
Founded in 1989 in Sidoarjo, East Java, PT Integra Indocabinet Tbk is the largest vertically integrated wooden products manufacturer in Indonesia. Integra has established itself as the fastest growing furniture manufacturer with international and domestic accreditation. Integra promotes the use of sustainable resources and supports the livelihoods of local communities. The group employs over 2,500 team members across Indonesia.
For further information, please contact:
E-mail : firstname.lastname@example.org
Tel : (62 31) 891 0434
Website : www.integragroup-indonesia.com
This press release has been prepared by PT Integra Indocabinet Tbk (WOOD) and is circulated for the purpose of general information only. It is not intended for any specific person or purpose and does not constitute a recommendation regarding the securities of WOOD. No warranty (expressed or implied) is made to the accuracy or completeness of the information. All opinions and estimations included in this release constitute our judgment as of this date and are subject to change without prior notice. Integra disclaims any responsibility or liability whatsoever arising which may be brought against or suffered by any person as a result of reliance upon the whole or any part of the contents of this press release and neither Integra nor any of its affiliated companies and their respective employees and agents accepts liability for any errors, omissions, negligent or otherwise, in this press release and any inaccuracy herein or omission here from which might otherwise arise.
Certain statements in this release are or may be forward-looking statements. These statements typically contain words such as “will”, “expects” and “anticipates” and words of similar import. By their nature, forward looking statements involve a number of risks and uncertainties that could cause actual events or results to differ materially from those described in this release. Factors that could cause actual results to differ include, but are not limited to, economic, social and political conditions in Indonesia; the state of the property industry in Indonesia; prevailing market conditions; increases in regulatory burdens in Indonesia, including environmental regulations and compliance costs; fluctuations in foreign currency exchange rates; interest rate trends, cost of capital and capital availability; the anticipated demand and selling prices for our developments and related capital expenditures and investments; the cost of construction; availability of real estate property; competition from other companies and venues; shifts in customer demands; changes in operation expenses, including employee wages, benefits and training, governmental and public policy changes; our ability to be and remain competitive; our financial condition, business strategy as well as the plans and objectives of our management for future operations; generation of future receivables; and environmental compliance and remediation. Should one or more of these uncertainties or risks, among others, materialize; actual results may vary materially from those estimated, anticipated or projected. Specifically, but without limitation, capital costs could increase, projects could be delayed and anticipated improvements in production, capacity or performance might not be fully realized. Although we believe that the expectations of our management as reflected by such forward-looking statements are reasonable based on information currently available to us, no assurances can be given that such expectations will prove to have been correct. You should not unduly rely on such statements. In any event, these statements speak only as of the date hereof, and we undertake no obligation to update or revise any of them, whether as a result of new information, future events or otherwise.