Despite Increase, Bakrie & Brothers' 2022 Profit Below Pre-Pandemic Level

PT Bakrie & Brothers Tbk (BNBR) and its subsidiaries booked a net profit attributable to the parent entity of Rp266.1 billion in 2022.

This figure increased by approximately 318% compared to 2021 (year-on-year/YoY), but remains significantly lower than their pre-pandemic achievement, where BNBR's net profit reached Rp852.9 billion in 2019.

Nevertheless, BNBR's achievement in 2022 shows a significant recovery compared to the beginning of the 2020 pandemic, as seen in the graph.

"This positive performance is the result of a number of strategic projects that we have implemented with our business units," said BNBR President Director Anindya Novyan Bakrie in a press release (5/3/2023).

"The manufacturing sector is one of the main contributors, in addition to the automotive sector, which includes revenue from the sale of electric buses by VKTR," said Anindya.

BNBR's business lines are diverse, ranging from general trading, construction, agriculture, mining, to steel pipe manufacturing, building materials and other construction products, media and telecommunications, and investments in other companies.

VKTR, cited as one of the drivers of BNBR's profit, is an electric vehicle trading and manufacturing company owned by the Bakrie & Brothers group.

VKTR is the result of the transformation of PT Bakrie Steel Industries, which initially operated in the distribution of conventional vehicle spare parts and the distribution of heavy equipment components for mining, palm oil plantations, logistics companies, and others.

The increase in BNBR's profit in 2022 is in line with their net revenue growth of 51.5% (YoY) to Rp3.63 trillion.

However, BNBR's liabilities or debts also increased. BNBR's total short-term debt increased from Rp13.33 trillion in 2021 to Rp15.33 trillion in 2022.

Then its long-term debt increased from Rp594.95 billion to Rp601.80 billion.

Its equity also increased from Rp1.29 trillion to Rp1.53 trillion, so BNBR's total assets increased from Rp15.22 trillion to Rp17.46 trillion by the end of 2022.