Catering business boosts revenue for Cardig Aero by 33%
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PT Cardig Aero Services (CASS) says its food business boosted the aviation support and food solutions company’s revenues to Rp 744.56 billion (US$77.25 million) in the first nine months of 2012, up 33.3 percent from the same period last year.
Income from Cardig’s food business division jumped more than threefold to Rp 151.28 billion, thanks to new catering contracts this year. Under this division, the publicly listed company provides meals for in-flight and industrial catering services and trades raw food materials.
Cardig has three food subsidiaries: PT Purantara Mitra Angkasa Dua, an in-flight catering provider; PT Cipta Anugrah Sarana Catering, an industrial catering provider; and PT Citra Anugra Saranaboga, a raw food trading operator.
Purantara serves several airlines, including AirAsia, Etihad Airways, Kuwait Airways, Qantas Airways, Singapore Airlines and Turkish Airlines.
Meanwhile, Cipta Anugrah currently provides more than 5,000 meals a day for employees of mining companies in Kalimantan. Earlier this year, Cipta Anugrah began offering catering services to PT Mandiri Inti Perkasa, PT Pama Persada Nusantara and PT Berau Coal Energy.
As of September, the food business comprised 20.3 percent of the firm’s total revenue, with the remainder coming from aviation services.
Cardig’s aviation services, which comprise cargo handling, ground handling and aircraft maintenance, improved as well during the first nine months of this year. Income from cargo handling grew 19.7 percent to Rp 299.88 billion, while ground handling income climbed 10.7 percent to Rp 239.56 billion and aircraft maintenance increased 25.5 percent to Rp 53.88 billion.
The aviation services division is run by subsidiaries PT Jasa Angkasa Semesta and PT JAS Aero Engineering, which oversees aircraft maintenance and serves about 30 clients.
Meanwhile, Jasa Angkasa Semesta operates cargo and ground handling services for more than 30 domestic and international airlines.
Jasa Angkasa Semesta currently works with PT Angkasa Pura I and PT Angkasa Pura II to deliver ground handling services at several airports, including Soekarno-Hatta International Airport in Tangerang, Banten; Halim Perdanakusuma Airport in East Jakarta; Ngurah Rai International Airport in Bali; and Juanda International Airport in Surabaya, East Java.
In line with higher revenues, Cardig’s operating expenses surged 29.3 percent to Rp 558.21 billion during the first nine months this year over the same period in 2011.
The company’s latest financial report also said that its finance costs jumped 103.6 percent to Rp 13.89 billion and it booked Rp 3 billion in foreign exchange losses. In the end, Cardig posted Rp 63.87 billion in net profits, 38 percent higher than the same period last year.
As of September, Cardig’s total assets reached Rp 821.36 billion, while its liabilities and equities stood at Rp 466.65 billion and Rp 354.71 billion, respectively.
According to Trust Securities analyst Reza Priyambada, the growing national economy has had a positive effect on Cardig. “However, thriving business may also result in higher costs, as shown in the company’s report right now. To increase its net profits even more, Cardig needs to lower costs and improve efficiencies.”