Furniture Manufacturer Records Strong Profit Growth in Q3 2024 — Here’s the Strategy

R. Nurwulan Kusumawat, Director of PT Chitose Indonesia, revealed that the company saw a significant increase in furniture manufacturing sales in the third quarter of 2024. She also shared the strategies behind this achievement.

“In Q3 2024, we recorded sales of IDR 320.02 billion, a substantial increase of 9% or IDR 25.12 billion compared to the same period last year,” Wulan stated on Friday (November 1, 2024).

She explained that the company’s performance growth was driven by key factors such as increased sales, operating cost control, and efficiency in business expenses. These strategies helped maintain gross profit margins, improve net profit, and optimize cash flow management.

“This allowed us to reduce financial burdens and ultimately post a positive net profit turnaround compared to the previous year,” Wulan added.

Sales growth came from both domestic and export markets. Domestic sales in 2024 contributed 92% of total revenue, amounting to IDR 294.34 billion, while export sales accounted for 8%, or IDR 25.68 billion.

Export performance saw a notable increase of nearly 109%, equal to IDR 13.40 billion, while domestic sales also rose by 4%, or approximately IDR 11.72 billion.

“Export growth was primarily driven by increased sales to Japan for chair products and to Malaysia for piano chairs and Airmate C-Pro,” she explained.

On the domestic front, sales growth was supported by strong performance in office furniture, hospital beds, and school furniture segments.

The company also implemented strict cost controls, resulting in a stable gross profit margin of 31%. Operating profit margin stood at 4%, an improvement over the same period last year, when the figure was around 2%.

“As a result, the company impressively recorded a net profit of IDR 6.68 billion in Q3 — a sharp increase from the same period last year, when we were still posting losses,” Wulan concluded.