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Financial Performance Improves, BNBR Plans to Carry Out a Quasi Reorganization

Financial Performance Improves, BNBR Plans to Carry Out a Quasi Reorganization

Starting in 2024, PT Bakrie & Brothers Tbk. (“Company” or “BNBR”) continues to promote a number of business strategies to improve performance in the future. BNBR is optimistic that in 2024 the Company will be increasingly able to achieve positive achievements through a number of strategic projects that have been ongoing.

“We are grateful, the hard work and business strategies that have been implemented so far continue to have a positive impact on the Company. “We are confident and optimistic that through a number of business strategies adopted we will maintain the smoothness and continuity of the business and have an even more positive impact on the Company in the future,” said BNBR Director & Chief Financial Officer (CFO) Roy Hendrajanto M. Sakti, in Jakarta, Wednesday ( 5/15/2024).

Roy explained that the business strategy in question includes, First, the Company continues efforts to strengthen business fundamentals by strengthening the operations of each business unit, so that it is able to maintain its competitiveness in the market. The company also opens opportunities to partner strategically in running its business.

“For the next 3 years, the Company is targeting a CAGR of 16.6% with a consolidated revenue portion of 40.8% from the steel pipe sector, 5.6% from the steel fabrication sector, 4.1% from the infrastructure and infrastructure supporting sector,” explained Roy.

Second, the Company is developing a new technology-based and ESG-focused business portfolio that has the potential to become a new source of income for the Company in the future. The Company has developed a business portfolio engaged in new renewable energy (EBT) power generation, electric vehicles and automotive components, and fast-build technology (3D printing construction and prefab houses).

“Furthermore, which is no less important, the Company actively manages and mitigates business and investment risks by implementing internal risk management which is an integrated part of the business process,” said Roy.

Quasi Reorganization Plan

On the same occasion, Roy also stated that BNBR plans to carry out a quasi reorganization. “This quasi-reorganization was carried out to improve the condition of the Company’s consolidated financial position report so that it can show a better financial position and the Company’s performance without being burdened by past deficits,” said Roy.

Roy detailed that there are five objectives of the quasi reorganization that will be implemented by the Company. First, with this corporate action the Company can start a new start (fresh start) with a financial balance that shows a profit balance without being burdened by past deficits.

Second, improve the Company’s equity structure by eliminating accumulated losses (deficits) by using other equity components such as share premium, differences in transactions with non-controlling parties and a decrease in share capital.

Third, with the condition of the financial balance showing the current value without being burdened by past deficits, it is hoped that the Company will find it easier to obtain funding, if necessary, for business development.

Fourth, the absence of a deficit balance will have a positive impact on shareholders because the Company can distribute dividends in accordance with applicable regulations, including the Limited Liability Company Law (UUPT).

“Fifth, increase investor interest and attraction to own Company shares, so it is hoped that this will also increase the trading liquidity of the Company’s shares,” explained Roy.

Improved Financial Performance

Roy Hendrajanto said, from year to year the Company also consistently shows an improving financial performance trend. This can be seen from the increase in revenue of 16.24% CAGR during the period 2021 to 2023.

“The increase in the Company’s revenue was largely due to the development of the Company’s business through its subsidiary PT VKTR Teknologi Mobilitas Tbk. (VKTR) which operates in the field of electric vehicle sales, PT Bakrie Metal Industries (BMI) and its subsidiaries which operate in the field of corrugated steel fabrication, steel pipe fabrication and steel construction and PT Bakrie Indo-Infrastructure (BIIN) which operates in the construction sector and infrastructure services including telecommunications infrastructure,” said Roy.

Moreover, continued Roy, this positive performance trend can also be seen from the increase in the Company’s operating profit for three consecutive years, respectively amounting to IDR 20.69 billion, IDR 231.91 billion and IDR 348.31 billion, with an average margin of operating profit of 5.51%.

Roy said, in December 2023, the Company had completed the restructuring of most of the Company’s obligations to creditors. With this restructuring, the Company’s performance in the following year will be better.

In the period 2021 to 2023, the Company has a profit for the year attributable to the owners of the parent entity of IDR 63.67 billion in 2021, IDR 266.13 billion in 2022 and IDR 237.46 billion in 2023, respectively. “The three-year average of current year profits attributable to the owners of the parent entity is IDR 189.09 billion,” explained Roy.

Furthermore, the Company has good prospects, as evidenced by the positive current year profit in the audited annual consolidated financial statements for 3 (three) consecutive years, respectively amounting to IDR 86.78 billion in 2021, IDR 306.15 billion in in 2022, and IDR 264.46 billion in 2023.

Request for Shareholder Approval

With this quasi reorganization plan, the Company will seek approval from shareholders at the Extraordinary General Meeting of Shareholders (EGMS) which is planned to be held on Friday, June 21 2024. The series of corporate actions in the form of quasi reorganization carried out by the Company are in accordance with The schedule will be finalized by the end of August 2024.


Bakrie & Brothers history bg

The Company’s journey began with the story of a growing small trading business, and in more than 75 years has engaged in investment/divestment business, has reached various achievements and delivered the Company to become one of the leading corporations in Indonesia.