PT Pan Brothers Tbk (PBRX), a textile issuer, reported a significant net loss throughout 2023, a stark contrast from its net profit in 2022.
PBRX's net loss for the full year of 2023 amounted to US$1.21 million or approximately Rp 18.63 billion, compared to a net profit of US$3.68 million or approximately Rp 56.65 billion in the same period of 2022.
Alongside the net loss, the company's net sales also decreased by 15% to US$581.61 million as of the end of 2023, down from US$690.04 million as of the end of 2022. Cost of goods sold also decreased to US$516.37 million as of December 31, 2023, from US$608.71 million as of December 31, 2022.
Moreover, selling expenses decreased to US$9.17 million as of December 31, 2023, down from US$11.21 million as of December 31, 2022. General and administrative expenses reached US$22.05 million, trimmed from US$25.32 million previously.
On the top-line side, Pan Brothers' assets as of the end of 2023 amounted to US$696.76 million or approximately Rp 10.73 trillion, down from US$724.64 million or approximately Rp 11.15 trillion in the same period of 2022.
Meanwhile, the company's total equity reached US$333.65 million as of the end of 2023, shrinking from the previous year-end position of US$341.02 million. The total liabilities of the company as of December 31, 2023, amounted to US$363.11 million, slightly down from US$383.63 million in the same period of 2022.
Furthermore, international rating agency Fitch Ratings downgraded Pan Brothers' bond rating from 'C' to 'RD' (Default Rating) since March 8, 2024.
PBRX failed to meet its obligation to pay interest at a rate of 7.625% per annum on the bonds worth US$171 million due on January 26, 2024.
"An RD rating indicates uncertainty regarding debt repayment but does not involve bankruptcy filings," wrote Fitch Ratings management in a disclosure to the Indonesia Stock Exchange on Thursday (March 14, 2024).
In response to the downgrade, PBRX Director Fitri Ratnasari Hartono stated that the company held a bondholder meeting and sent a letter requesting approval from the bond trustee regarding the bond coupon payment plan.
"Fitch Ratings will reassess the rating upgrade if there is a payment resolution," Fitri wrote in an official statement.