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20240731_AVIA_Laporan Informasi dan Fakta Material_31689379_lamp2.pdf
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PT Avia Avian Tbk
Investor Presentation
Q2 2024 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 their professional investment advisor and to make independent investigations before acting on the information that we publish. Much of our information is derived directly from information published by companies or submitted to governmental agencies 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 and 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. 2
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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 Q2 2024 snapshot
SALES GROSS PROFIT EBITDA NET PROFIT
IDR 1.7 T IDR 744 B IDR 447 B IDR 362 B
( US$ 106 m ) ( US$ 46 m ) ( US$ 28 m ) ( US$ 22 m )
43.3% 26.1% 21.1%
EMPLOYEES DISTRIBUTION COVERAGE CUSTOMERS
CENTERS
38 Provinces 57,000+
8,000+ 162 99 Cities Retail outlets
Convenience translation from IDR based on the average USD/IDR exchange rate in Q2 2024 of 16,187
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Q2 2024 financial performance highlights
In IDR billion 2024 2023 Change ▪ In Q2, Avian Brands recorded consolidated
(except per share data) sales of IDR 1.7 trillion, reflecting a slight
Consolidated sales 1,716 1,726 -0.6% decrease from the same period last year.
Architectural solutions 1,320 1,397 -5.5% ▪ The inflation rate was softer during Q2,
hovering around 3%(2) primarily driven by the
Trading goods 395 330 19.9%
pressure on consumer spending.
Gross profit 744 777 -4.3%
▪ The primary food inflation persists in Q2. In
Architectural solutions 673 718 -6.2% addition, consumer purchasing power has
Trading goods 71 59 19.2% been negatively impacted by the growing
issues of online gambling and digital lending.
Gross margin 43.3% 45.0% -1.7%
▪ Through our sustainable growth strategies, the
Architectural solutions 51.0% 51.4% -0.4%
company is focused on seizing market share
Trading goods 17.8% 17.9% -0.1% from other competitors amidst the challenging
EBITDA 447 495 -9.6% market conditions.
EBITDA margin 26.1% 28.7% -2.6%
Net profit 362 390 -7.3%
Net profit margin 21.1% 22.6% -1.5%
EPS 5.9(1) 6.3 -6.2%
(1) Calculated based on the weighted average number of shares in Q2 2024 after taking into account the treasury shares
(2) Bank Indonesia
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Distribution center expansion
Benefits from the
continued expansion of
distribution centers:
▪ Improve product
penetration by
reaching a wider
range of customers
nationwide.
▪ Provide superior
quality of service and
enhance customer
relationships.
▪ Optimize inventory
management and
minimize loss
▪ During Q2 2024, we opened 2 wholly-owned distribution centers.
opportunities.
▪ Our logistical infrastructure enables us to make ~12,000 daily deliveries.
▪ We are able to achieve 92%(1) 1-day delivery service fulfilment.
(1) For retail outlets located within a 50 km radius of a wholly-owned distribution center
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Consolidated business – sales & customers
Q2 sales by value H1 sales by value Q2 number of H1 number of
(IDR billion) (IDR billion) customers customers
3,508 3,621
1,726 53,045 53,933
1,716 49,168 50,061
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Consolidated business – sales
H1 2024 sales by segments H1 sales by customers H1 sales by distribution
networks
Trading goods
0.7% 0.6%
20%
7.4% 8.1% 12.0% 10.6%
92.6% 91.9% 87.4% 88.8%
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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
Q2 gross profit H1 gross profit ▪ In Q2, the company registered a consolidated gross
(IDR billion) (IDR billion) profit of IDR 744 billion. The gross margin for the
quarter was 43.3%.
▪ For the first half, consolidated gross profit exceeded
margin in % margin in %
IDR 1.6 trillion. During the same period, the
45.0 43.3 45.2 45.0
consolidated gross margin was recorded at 45.0%.
▪ Throughout the second quarter of 2024, raw
1,584 1,629
777 744 material prices remained relatively stable. However,
certain materials started to show a rising trend.
▪ The company has decided to ramp up its
promotional activities in response to the more
aggressive competition, which impacted the gross
margins.
▪ In Q2, sales contribution from the trading goods
segment rose to 23%, higher than the normal level of
20%. This led to a contraction of Q2 gross margin.
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Consolidated business – EBITDA & net profit
Q2 EBITDA H1 EBITDA Q2 net profit H1 net profit
(IDR billion) (IDR billion) (IDR billion) (IDR billion)
margin in % margin in % margin in % margin in %
28.7 26.1 28.9 27.7 22.6 21.1 23.0 22.3
808 808
1,014 1,002
495 390
447 362
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Architectural solutions – sales
Q2 sales by value H1 sales by value Q2 sales by volume(1) H1 sales by volume(1)
(IDR billion) (IDR billion) (metric ton) (metric ton)
2,888 2,894 81,963 81,857
1,397 39,571
1,320 37,099
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(1) Excluding instant cement
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Architectural solutions – customers
Q2 number of H1 number of
customers customers
as % of total customers as % of total customers
91.3 91.7 91.1 91.8
48,323 49,499
44,872 45,905
21st June 2024 - Avian Brands’ national gathering
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Trading goods – sales & customers
Q2 sales by value H1 sales by value Q2 number of H1 number of
(IDR billion) (IDR billion) customers customers
as % of total customers as % of total customers
73.3 74.7 80.3 81.1
726
395 42,600 43,725
620
330 36,041 37,419
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Gross profit by segment
Architectural solutions Trading goods
Q2 gross profit H1 gross profit Q2 gross profit H1 gross profit
(IDR billion) (IDR billion) (IDR billion) (IDR billion)
margin in % margin in % margin in % margin in %
51.4 51.0 51.0 51.8 17.9 17.8 18.0 18.1
1,472 1,498 131
718 673 71 112
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Well-managed cost structure
Cost breakdown (as % of sales)
2023 H1 24 ▪ The company was able to
maintain steady operating
G & A(1) 3.2% 3.5%
expenses.
Sales and marketing(1) 17.7% 17.1% ▪ Avian Brands continues to be
COGS(1) 54.6% 55.0% aggressive in its sales and
marketing endeavours.
Total 75.5% 75.6%
COGS breakdown (as % of sales)
2023 H1 24 ▪ Direct labour and factory
overhead costs remain
Raw material 27.8% 25.5%
relatively stable.
Direct labour 1.1% 1.1% ▪ The rise in BTL expenses aligns
Factory overhead 2.4% 2.6% with the company’s escalated
promotional efforts, particularly
WIP and FG 15.8% 16.8% in response to the more intense
Below-the-line (BTL) expenses 7.6% 9.0% competition.
Total 54.6% 55.0%
(1) Includes depreciation and amortization
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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 Inflation Inflation
30.1 28.9 3.1 4.6 16.7 18.4 pressure pressure
2,112 2,096 216 90.2%
1,171 88.8%
997 1,048
167
88
523 473 45 668
1,243 1,293
128 122
-651 -718
23 H1 24 23 H1 24 23 H1 24 23 Q1 24
AR RM inventory Expansion capex
FG inventory AP Routine capex (1)
(1) The routine capex consists of upgrades to the manufacturing facilities and IT infrastructure, trucks and vehicles in the distribution centers, and tinting machines for retail outlets
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Updates on the share buyback program
Number of shares Value in Rupiah ▪ The company initiated the share buyback program
(million) (IDR billion) in December 2023.
▪ The maximum authorized number of shares for the
buyback program is 1,425 million shares with a
maximum allocated fund of IDR 1 trillion.
▪ As of June 2024, the company has successfully
acquired ~49% of the maximum number of shares,
1,425 1,000
using ~37% of the total allocated fund.
▪ The company’s main consideration in conducting
the share buyback program is to bolster investor
confidence.
697
368
Realization(1) Maximum Realization(1) Maximum
(1) As of June 2024
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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 and
accelerate the deployment of tinting machines at
retail outlets.
▪ Expand the distribution centers to strengthen
product penetration and market presence.
▪ Improve our service quality to deliver exceptional Painting a Beautiful Picture of
value and distinguish ourselves from competitors. Indonesia
▪ Proceed with the share buyback program.
▪ Numerous Internal process and ESG improvements.
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