Pan Brothers eyes exporting PPE in September

first_imgGarment manufacturer PT Pan Brothers is eyeing an opportunity to export its personal protective equipment (PPE) to regions such as the Americas, Europe, Southeast Asia and Africa following the issuance of permits by the government.Vice president director Anne Patricia Sutanto said on Wednesday the company was planning to export the PPE to several countries in those regions including the United States, Canada, France, Italy, Singapore and South Africa.“We expect to start the exports in September as we’ve already received permission to export the PPE from the government,” she said during a virtual press briefing. She went on to say that the publicly listed company currently produced about 3 million to 5 million items of PPE per annum but it could increase the production to its maximum capacity of 10 million PPE items.The Trade Ministry in June lifted an export ban on PPE amid an oversupply in national production and allowed manufacturers to export surgical masks, N-95 masks, coveralls, surgical gowns and raw materials to make face masks.Read also: Govt revokes export ban on PPE amid oversupplyTrade Minister Agus Suparmanto expected the decision could spur national economic growth, particularly for manufacturing, and improve Indonesia’s export performance during the COVID-19 pandemic. Editor’s note: This article has been revised to state that Pan Brothers booked $326.21 million of sales during this year’s first half.Topics :center_img Other than expanding PPE sales overseas, Anne said the company was also planning to expand its partnerships with existing clients.“Currently, we only supply performance wear for our client, Adidas. Going forward, we aim to also supply garments for lifestyle wear so that we can provide a complete supply chain solution for them,” she said.The company plans to expand its production capacity to 130 million garment pieces annually by 2021 from the current 117 million through automation and digitalization in all of its factories spread across the country. It expects that these efforts will increase output and maintain consistent quality for its products.The company has allocated US$10 million to $15 million of funding this year to support the expansion plan.“The funds will be used to upgrade our machinery, as well as to fund our automation and digitalization efforts in all of our factories,” said Anne.Despite experiencing flat growth in garment demand from its global brand clients, which contribute around 90 percent of its sales, Pan Brothers still managed to book double-digit growth in its top line in the first half of this year.Read also: Local PPE producers pass international standards, gear up for exportThe company booked $326.21 million of sales during this year’s January-June period, 14.54 percent higher compared with the same period in 2019. Anne attributed the growth to the rising sales of PPE and face masks, which contributed around 10 percent of its total sales during the period.The company’s net profits jumped by 42.55 percent year-on-year (yoy) to $12.08 million in the first half of this year.“We expect our sales to grow by 15 percent this year supported by PPE and face mask sales,” Anne said, expecting the gross profit and operating profit to expand by 13.6 percent and 6.3 percent, respectively, this year.Pan Brothers’ shares, trading on the Indonesia Stock Exchange (IDX) under the code PBRX, has lost 50.98 percent of its value since the beginning of the year. The company’s share price stood at Rp 250 apiece, unchanged on the day, on Thursday.last_img

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