BNBR Lowers Liability by 38 percent in Q3 2024

Jakarta, VIVA – Bakrie & Brothers (BNBR) successfully reduced its liability by 38 percent in Q3 2024, bringing them down to IDR 2.75 trillion from IDR 4.44 trillion in the same period last year.

BNBR also recorded a significant increase in equity, up by 62.7 percent to IDR 4.32 trillion in Q3 2024, compared to IDR 2.66 trillion during the same quarter in 2023.

"We're grateful that the company now enjoys a healthier debt ratio, lighter financial burdens, and stronger cash flow," said Anindya Novyan Bakrie, President Director & CEO of Bakrie & Brothers, in a statement.

In its Q3 2024 financial report, Bakrie also revealed that BNBR achieved a remarkable 416.8 percent increase in net income, reaching IDR 636.27 billion, up from IDR 123.12 billion in the same period the previous year.

Despite a revenue decline of 11.6 percent year-over-year, the company’s gross profit grew by 6.8 percent, while operating profit rose by 1 percent.

Bakrie stated that EBITDA growth over the same period highlights BNBR’s positive performance, with the significant net income boost primarily driven by the sale of one of the company’s assets to settle debt.

BNBR’s Chief Financial Officer, Roy Hendrajanto M. Sakti, added that the company’s balance sheet is now much leaner and healthier.

After years of restructuring efforts, and following the effective implementation of a quasi-reorganization on August 22, 2024, BNBR is now preparing for the final phase of its corporate actions with a planned private placement.

“To execute this private placement, the company will convene an Extraordinary General Meeting of Shareholders to seek shareholder approval,” Sakti explained.

This final private placement will complete BNBR's debt conversion agenda. With the restructuring, BNBR will no longer hold overdue material long-term liability.

Consequently, the company’s debt-to-assets ratio has dropped from 63 percent at the end of last year to 39 percent. Its debt-to-equity ratio also saw a notable decrease, from 167 percent at the end of 2023 to 64 percent by September 30.

As of the end of Q3, BNBR achieved retained earnings of IDR 636.3 billion, a substantial turnaround from the IDR 19.5 trillion deficit, which was cleared through the quasi-reorganization.

“The series of corporate actions we’ve taken has shown positive results, and we are approaching the final stage of our restructuring process, with its outcomes now reflected in our balance sheet,” he concluded.

BNBR's balance sheet now shows a strong liability and equity structure. Moving forward, the company will focus on strengthening operational performance across all business units and developing new ventures in strategic projects.