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20240228_AVIA_Laporan Informasi dan Fakta Material_31581433_lamp1.pdf
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PT Avia Avian Tbk
Investor Presentation
FY 2023 Results
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Disclaimer
All investments are highly speculative in nature and involve substantial risk of loss. We encourage our investors to invest
very carefully. We also encourage investors to get personal advice from your professional investment advisor and to make
independent investigations before acting on information that we publish. Much of our information is derived directly from
information published by companies or submitted to governmental agencies on which we believe are reliable but are
without our independent verification. Therefore, we cannot assure you that the information is accurate or complete. We
do not in any way whatsoever warrant or guarantee the success of any action you take in reliance on our statements or
recommendations.
Past performance is not necessarily indicative of future results. All investments carry significant risk and all investment
decisions of an individual remain the specific responsibility of that individual. There is no guarantee that systems, indicators,
or signals will result in profits or that they will not result in a full loss or losses. All investors are advised to fully understand all
risks associated with any kind of investing they choose to do.
Various statements contained in this presentation, including those that express a belief, expectation or intention, as well as
those that are not statements of historical fact, are forward-looking statements. These forward-looking statements may
include projections and estimates concerning the timing and success of strategies, plans or intentions. We have based
these forward-looking statements on our current expectations and assumptions about future events. These assumptions
include, among others, our projections and expectations regarding: market trends litigation, our ability to create an
opportunity with attractive current yields and upside. While we consider these expectations and assumptions to be
somewhat reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other
risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control
and could cause actual results to differ materially from any future results, performance or achievements expressed or
implied by these forward-looking statements. Investors should not place undue reliance on these forward-looking
statements. We undertake no obligation to update any forward-looking statements to conform to actual results or
changes in our expectations, unless required by applicable law.
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Avian Brands team
Ruslan Tanoko Robert Tanoko Kurnia Hadi Andreas Hadikrisno
Vice President Operations & Finance Director Head of Investor
Director Development Director Relations
ruslan.tanoko robert.tanoko kurnia.hadi investor.relations
@avianbrands.com @avianbrands.com @avianbrands.com @avianbrands.com
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Avian Brands FY 2023 snapshot
SALES GROSS PROFIT EBITDA NET PROFIT
IDR 7.02 T IDR 3,183 B IDR 1,928 B IDR 1,643 B
( US$ 461 m ) ( US$ 209 m ) ( US$ 127 m ) ( US$ 108 m )
45.4% 27.5% 23.4%
EMPLOYEES DISTRIBUTION COVERAGE CUSTOMERS
CENTERS
38 Provinces 56,000+
8,000+ 158 99 Cities Retail outlets
Convenience translation from IDR based on the average IDR/USD exchange rate in 2023 of 15,225
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FY 2023 financial performance highlights
In IDR billion 2023 2022 Change ▪ Consolidated sales grew by 4.8% in 2023
(except per share data) compared to the previous year.
Consolidated sales 7,017 6,694 4.8% ▪ The architectural solutions and trading goods
segments have exhibited notable progress,
Architectural solutions 5,618 5,384 4.3%
with sales demonstrating a 4.3% and 6.8%
Trading goods 1,399 1,310 6.8% year-on-year growth, respectively.
Gross profit 3,183 2,717 17.1% ▪ In addition, both segments also delivered
significant double-digit growth in gross profits,
Architectural solutions 2,932 2,491 17.7% resulting in the highest consolidated gross
Trading goods 251 227 10.8% margin in the last five years, reaching a level
of 45.4%.
Gross margin 45.4% 40.6% 4.8%
▪ EBITDA has shown a substantial improvement
Architectural solutions 52.2% 46.3% 5.9% of 15.8% compared to last year, with a
Trading goods 18.0% 17.3% 0.7% recorded margin of 27.5%.
▪ Moreover, the net profit has remarkably
EBITDA 1,928 1,664 15.8%
improved by 17.3%, with the margin recorded
EBITDA margin 27.5% 24.9% 2.6% at a strong 23.4%, which is the highest level
recorded in the last five years.
Net profit 1,643 1,400 17.3%
Net profit margin 23.4% 20.9% 2.5%
EPS 26.5 22.6 17.3%
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Business update in FY 2023
▪ The year 2023 has witnessed a comparatively Indonesia inflation rate & CPI(1)
less severe inflation rate than in 2022.
▪ Concerns regarding purchasing power
continue to persist amidst the ongoing rise in 5.5%
the CPI and the potential threat posed by
5.6% 150.0
primary goods inflation. For instance, the 145.0
average wholesale price for rice has gone up 4.6%
by 17.0%(2) year-on-year.
140.0
▪ The increase in the minimum wage over the
135.0
3.6%
past three years has failed to keep pace with 2.7%
130.0
the rising price of building materials, falling 2.6% 125.0
behind by around 10%. 1.8%
1.6% 115.6
120.0
▪ This trend of weakness has been observed 1.6%
113.7
across various industries, where multiple
115.0
companies have recorded weak sales 108.3
105.7
110.0
performance in 2023.
0.6%
105.0
▪ Avian Brands has been strategically
positioned to strengthen its market share by Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
-0. 4% 100.0
leveraging its wide range of products and
vast distribution network.
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Inflation
Consumer Price Index - Furnishings & routine household maintenance
(1) Bank Indonesia
(2) The Central Bureau of Statistics – Indonesia’s average wholesale rice price
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New products launched in FY 2023
Key product segments Price range
Premium 5 4 3 2 1 Economic
Brilliant Avitex Avitex Brilliant Avitex Avitex Aries Aries
Exterior Exterior Anti Viruz Interior Gold Avitex Wizz Gold Bling Aries
Wall
Avian Avian Avian Cling
Platinum 3in1 Avian Cling Yoko Zinc Chromate
Wood & metal
No Drop No Drop No Drop No Drop
Anti Panas Plus 3in1 No Drop Basic Bitumen
Waterproofing
Avian Avian Lem Avian Non
Lem Epoxy Epoxy Hemat Sag
Wood care & glue
GML500 GM510 GM270 GM480 GM220 GM380
Instant cement
Admiral Wood Admiral Admiral VIP Paint Admiral Thinner Avia
Filler Epoxy No Lumut Anti Fouling Marine Coating Remover Serbaguna Thinner
Others
▪ 14 products were launched in 2023 across various categories (as indicated in blue labels).
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Distribution center expansion
Benefits from the
express delivery
program:
▪ Provide
unmatched
service quality to
customers.
▪ Help retail outlets
boost profitability
and lower their
working capital.
▪ Incentivize retail
outlets to offer
more variants of
our products.
▪ In 2023, we opened 9 wholly-owned DCs, 10 wholly-owned mini DCs, and 3 third-party DCs.
Wholly-owned DC ▪ We own and operate 587 delivery trucks and 43 three-wheeler motorcycles (express delivery),
logistics & delivery allowing us to make ~10,000 daily deliveries.
fleet
▪ 94%(1) 1-day and 33%(2) express delivery service fulfilment.
(1) For retail outlets located within a 50 km radius of a wholly-owned DC
(2) For retail outlets located within a 40 km radius of a wholly-owned DC
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Consolidated business – sales & customers
Q4 sales by value FY sales by value Q4 number of customers FY number of customers
(IDR billion) (IDR billion)
as % of total sales
25.9 26.4
56,132 56,878
7,017
6,694 49,398 50,043
1,853
1,736
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FY 2023 sales split by regions
11.3% 12.4%
8.5% 7.1%
8.6%
Kalimantan Sulawesi 5.4%
16.9%
22.0% Sumatra
50.8% Java The rest of Indonesia
57.1%
AVIA ▪ We focus our attention on areas where our sales contribution still lags behind the Indonesian GDP,
namely Jakarta and the northern Sumatra region.
GDP(1) ▪ In Kalimantan, Sulawesi, and the rest of Indonesia, our sales have surpassed GDP contribution.
(1) Indonesia’s GDP split by region (The Central Bureau of Statistics – Indonesia’s economic growth)
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Consolidated business - sales
FY 2023 sales by segments FY sales by customers FY sales by distribution
networks
Trading goods 0.5% 0.6%
20% 6.8% 7.5% 12.3% 11.2%
93.2% 92.5% 87.2% 88.2%
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Architectural solutions(1) Modern retail outlets
Others
80% Third-party DCs
Traditional retail outlets Wholly-owned DCs
(1) For investors who require details on the sales breakdown by segments, please contact our Head of Investor Relations
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Consolidated business – gross profit
Q4 gross profit FY gross profit ▪ In Q4 2023, the consolidated gross profit experienced
(IDR billion) (IDR billion) a notable growth of 12.0% compared to the
corresponding quarter of last year. Similarly, the
consolidated gross margin for the period was
recorded at 44.5%, indicating a 2.1% increase
margin in % margin in %
compared to the previous year.
42.4 44.5 40.6 45.4
▪ For the full year 2023, gross profit demonstrated a
3,183 remarkable improvement, with a year-on-year
825 growth of 17.1%. Additionally, the consolidated gross
2,717 margin for the year reached 45.4%, marking a
737
significant improvement of 4.8% over the same
period last year.
▪ Please note that in 2023, there was an accounting
reclassification of below-the-line expenses which
contributed to the increase in gross margin by 1.4%.
▪ The improvement in gross profit was primarily
supported by the decline in raw material prices.
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Consolidated business – EBITDA & net profit
Q4 EBITDA FY EBITDA Q4 net profit FY net profit
(IDR billion) (IDR billion) (IDR billion) (IDR billion)
margin in % margin in % margin in % margin in %
24.2 27.2 24.9 27.5 20.4 24.1 20.9 23.4
503
1,928 447 1,643
420 1,664 1,400
353
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Architectural solutions - sales
Q4 sales by value FY sales by value Q4 sales by volume(1) FY sales by volume(1)
(IDR billion) (IDR billion) (metric ton) (metric ton)
as % of total sales as % of total sales
25.7 25.6 24.0 26.8
5,618 163,790
5,384 161,142
1,438 43,873
1,385
38,718
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(1) Excluding instant cement
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Architectural solutions - customers
Q4 number of customers FY number of customers ▪ Avian Brands is highly committed to building and
maintaining strong, long-lasting customer
relationships.
▪ We have developed the Avian Brands Priority
Customers (ABPC) program, which is designed to
as % of total customers as % of total customers
foster trust and loyalty among our major retail
90.1 91.3 89.7 90.9
partners.
50,354 51,709 ▪ This program has proven to be highly effective in
45,667 driving sales and improving overall customer
44,525
satisfaction.
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Avian Brands’ priority customer plaques
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Trading goods – sales & customers
Q4 sales by value FY sales by value Q4 number of customers FY number of customers
(IDR billion) (IDR billion)
as % of total sales as % of total customers as % of total customers
26.8 29.7 75.0 75.8 85.0 84.3
1,399
1,310 47,700 47,930
415 37,953
37,027
351
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Gross profit by segment
Architectural Solutions Trading Goods
Q4 gross profit FY gross profit Q4 gross profit FY gross profit
(IDR billion) (IDR billion) (IDR billion) (IDR billion)
margin in % margin in % margin in % margin in %
47.7 52.1 46.3 52.2 15.2 18.4 17.3 18.0
749 2,932
683 76 251
2,491 227
53
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Well-managed cost structure
Cost Breakdown (as % of sales)
2022 2023 ▪ The increase in sales and
marketing expenses represents the
G & A(1) 3.2% 3.2% company’s more aggressive
marketing strategies as we
Sales and marketing(1) 15.3% 17.7%(2) continue to bolster our brand's
COGS(1) 59.4% 54.6% perception on a nationwide level.
Total 77.9% 75.5%
COGS Breakdown (as % of sales)
2022 2023 ▪ The decline in raw material as % of
sales is attributable to the
Raw material 32.0% 27.8% decrease in raw material prices,
which has positively impacted the
Direct labour 1.1% 1.1% company's profitability.
Factory overhead 2.5% 2.4% ▪ The company has continued to
prioritize its promotional activities,
WIP and FG 15.7% 15.8% especially to support the
successful introduction of new
Below-the-line (BTL) expenses 8.1% 7.6%(2)(3) product innovations.
Total 59.4% 54.6%
(1) Includes depreciation and amortization
(2) The accounting reclassification led to a reduction of 1.4% in BTL expenses while adding to the sales and marketing expenses
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(3) The BTL expenses for new products increased to ~1%
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Robust cash-flow generation & AR management
Trade working capital Capital expenditure Free cash flow On-time collection
(IDR billion) (IDR billion) (IDR billion)
as % of total sales as % of total sales as % of total sales Covid + inflation
29.1 30.1 2.9 3.1 16.4 16.7 pressure + fuel Inflation
subsidy reduction pressure
1,947 2,112 216 90.4% 90.4%(2)
1,171
191 1,099
953 997 14
88
494 523
1,074 1,243 177
128
-574 -651
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AR RM inventory Expansion capex
FG inventory AP Routine capex(1)
(1) The routine capex consists of upgrades to the manufacturing facilities and infrastructure for IT, trucks and vehicles in the distribution centers, and tinting machines for retail outlets
(2) Represents YTD Q3 data
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Avian Brands’ commitment to ESG
Product stewardship Environmental
▪ 81.5% of the product portfolio are water-based. ▪ 1,815 GJ of total renewable energy from 1,228
▪ 29 products have obtained Green Label unit solar panels.
Singapore certification. ▪ 10.2% reduction of energy intensity from 2022 to
▪ 50.7% of raw materials used in production are 2023.
renewable-based materials. ▪ 11.5% reduction in hazardous waste disposal
from 2022 to 2023.
▪ 15.5% reduction of greenhouse gas (GHG)
emission scope 1 & 2 from 2021 to 2023.
Social Governance
▪ Received Zero Accident Award. ▪ Good corporate governance (GCG) policy.
▪ Corporate social responsibility (CSR) investment ▪ Effective actions on the whistleblowing system.
through our three main pillars, including ▪ Signatory of the 2023 Anti-Corruption Call-to-
education, environment, and disaster Action.
management action.
▪ 20% women at the Board of Directors level.
▪ Social, labor, and human rights policies.
▪ 128,278 total hours of employee training.
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Guidance for 2024
FY 2024 sales guidance:
▪ Value growth 6 - 10%
▪ Volume growth 4 - 8%
Planned actions in 2024:
▪ Launch new products in various segments to expand
the consumer base, thereby creating significant growth
opportunities.
▪ Accelerate the deployment of tinting machines at
retail outlets to support the product innovation
strategy.
▪ Expand the distribution centres to strengthen product
penetration and market presence.
▪ Continue to roll out express delivery (~2 hours) to
provide unmatched service quality for customers.
▪ Numerous Internal process and ESG (environmental,
social, and governance) improvements.
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