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PT Avia Avian Tbk
   Investor Presentation
      Q1 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.



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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 Q1 2024 snapshot


             SALES                                GROSS PROFIT                                       EBITDA          NET PROFIT
           IDR 1.9 T                                   IDR 886 B                                    IDR 555 B        IDR 446 B
           ( US$ 122 m )                                 ( US$ 57 m )                                ( US$ 35 m )      ( US$ 29 m )
                                                            46.5%                                       29.1%             23.4%




        EMPLOYEES                                  DISTRIBUTION                                    COVERAGE         CUSTOMERS
                                                     CENTERS
                                                                                                   38 Provinces       56,000+
             8,000+                                          161                                     99 Cities      Retail outlets

Convenience translation from IDR based on the average USD/IDR exchange rate in Q1 2024 of 15,650




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    Q1 2024 financial performance highlights

          In IDR billion                     2024               2023             Change                 ▪ In Q1 2024, consolidated sales increased by
       (except per share data)                                                                            6.9% year-on-year.
    Consolidated sales                       1,905              1,782                 6.9%              ▪ The architectural solutions and trading goods
     Architectural solutions                 1,574              1,491                  5.6%               segments recorded positive growths in sales
                                                                                                          and gross profits.
     Trading goods                              331               290                13.9%
                                                                                                        ▪ In addition, both EBITDA and net profit
    Gross profit                                886               807                 9.8%
                                                                                                          improved in Q1, indicating a positive bottom-
     Architectural solutions                    825               754                  9.4%               line performance.
     Trading goods                               61                 53               15.3%              ▪ Regarding the economic update, Indonesia's
    Gross margin                            46.5%              45.3%                  1.2%                inflation rate was maintained at ~3% in Q1.
                                                                                                          However, during the same period, the
     Architectural solutions                52.4%              50.6%                   1.8%
                                                                                                          average wholesale price for rice went up by
     Trading goods                          18.4%              18.1%                   0.2%               19.2%(2) year-on-year.
    EBITDA                                      555               519                 6.9%              ▪ The company is actively assessing the impacts
    EBITDA margin                           29.1%              29.1%                  0.0%                of the economic uncertainties posed by rising
                                                                                                          geopolitical tension and the risk of a global
    Net profit                                  446               417                 7.0%
                                                                                                          economic slowdown.
    Net profit margin                       23.4%              23.4%                  0.0%
    EPS                                       7.2(1)               6.7                7.6%
(1) Calculated based on weighted average number of shares in Q1 2024 after taking into account the treasury shares
(2) The Central Bureau of Statistics – Indonesia’s average wholesale rice price


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    New products launched in Q1 2024
    Key product segments                                                                    Price range
                            Premium               5                        4                         3                    2                          1   Economic
                                                                 Avian           Avian Cling Avian                Avian Cling
                                                      Platinum    3in1   Avian       WB      Cling   Yoko       Zinc Chromate

     Wood & metal
                                          No Drop     No Drop     No Drop          No Drop No Drop No Drop No Drop No Drop         No Drop No Drop
                                         Anti Panas Dempul Instan Plus 3in1 No Drop Plaston Basic  Bitumen Tile Grout Mortar        Tape   Serat Fiber

     Waterproofing
                                           Avian       Avian Lem    WoodEco     Boyo    Avian Non WoodEco Boyo Politur   Boyo        Boyo
                                         Lem Epoxy    Epoxy Hemat   Woodstain Woodstain    Sag     Politur  Spray        Politur   Wood Filler

       Woodcare


▪ We launched a total of 5 new products across 3 segments
     as indicated in blue labels.
▪ This is a testament to the company's commitment to
     continuously exploring opportunities to fill the gaps in the
     market and expand its customer base.
▪ Our goal is to create products that deliver the best
     performance, durability, affordability, and sustainability in
     the market.




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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
                                                                                 across the nation.
                                                                               ▪ Provide superior
                                                                                 quality of service and
                                                                                 enhance customer
                                                                                 relationships, leading
                                                                                 to improved customer
                                                                                 satisfaction and
                                                                                 loyalty.
▪ In Q1 2024, we opened 3 wholly-owned DCs and 1 wholly-owned mini DC.         ▪ Increase inventory
▪ Our logistical infrastructure enables us to make ~11,000 daily deliveries.     management and
                                                                                 minimize loss
▪ We are able to achieve 93%(1) 1-day delivery service fulfilment.
                                                                                 opportunities.

(1) For retail outlets located within a 50 km radius of a wholly-owned DC



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    Consolidated business – sales & customers

                  Q1 sales by value              Q1 number of customers
                      (IDR billion)




                                                49,921             50,512
                                      1,905
          1,782




          23                          24         23                  24



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    Consolidated business – sales

                       Q1 sales by segments                                        Q1 sales by customers           Q1 sales by distribution
                                                                                                                          networks


      Trading goods                                                                                                    0.6%         0.6%
           17%                                                                        6.8%             7.1%           12.1%         11.5%




                                                                                     93.2%             92.9%          87.3%         87.9%




                                                                                      23                 24            23            24
                                             Architectural solutions(1)               Modern retail outlets
                                                                                                                         Others
                                                       83%                                                               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, EBITDA & net profit

       Q1 gross profit                    Q1 EBITDA                    Q1 net profit
            (IDR billion)                  (IDR billion)                 (IDR billion)



            margin in %                   margin in %                    margin in %
     45.3                   46.5   29.1                    29.1   23.4                   23.4


                            886                            555                           446
                                   519                            417
     807




     23                     24     23                      24     23                     24



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 Architectural solutions – sales & customers

             Q1 sales by value               Q1 sales by volume(1)            Q1 number of customers
                     (IDR billion)                    (metric ton)



                                                                                  as % of total customers
                                                                                90.9                  91.6

                                     1,574                           44,758
            1,491                            42,392                            45,362              46,268




             23                      24        23                     24         23                   24
(1) Excluding instant cement



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 Trading goods – sales & customers

             Q1 sales by value          Q1 number of customers
                 (IDR billion)



                                                as % of total customers
                                        77.1                               76.0
                                 331
       290                             38,507                             38,412




       23                        24     23                                 24



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 Q1 gross profit by segment

         Architectural solutions              Trading goods
                (IDR billion)                   (IDR billion)



                margin in %                     margin in %
       50.6                     52.4   18.1                     18.4


                                825
       754                                                       61
                                       53




       23                       24     23                       24



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 Well-managed cost structure

 Cost breakdown (as % of sales)
                                             2023      Q1 24     ▪ During the first quarter of 2024,
                                                                   the company was able to
 G & A(1)                                       3.2%      3.1%
                                                                   maintain relatively stable
 Sales and marketing(1)                        17.7%     17.4%     operating expenses.
 COGS(1)                                       54.6%     53.5%
 Total                                        75.5%      74.0%
 COGS breakdown (as % of sales)
                                             2023      Q1 24     ▪ The decline in raw material as
                                                                   % of sales is driven by the
 Raw material                                  27.8%     22.6%
                                                                   decline in raw material prices.
 Direct labour                                  1.1%      1.0%   ▪ The increase in BTL expenses
 Factory overhead                               2.4%      2.5%     aligns with the company’s
                                                                   more aggressive promotional
 WIP and FG                                    15.8%     18.8%     activities.
 Below-the-line (BTL) expenses                  7.6%      8.7%
 Total                                        54.6%      53.5%
(1) Includes depreciation and amortization



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 Robust cash-flow generation

           Trade working capital                                              Capital expenditure                                                     Free cash flow
                       (IDR billion)                                                      (IDR billion)                                                     (IDR billion)



                  as % of total sales                                                  as % of total sales                                             as % of total sales
             30.1                    29.4                                        3.1                         3.6                                  16.7                    13.4



            2,112                       2,237                                   216                                                              1,171

              997                         973
                                                                                 88
              523                         473

            1,243                       1,395                                                                69
                                                                                128                                                                                            256
                                                                                                             27
             -651                        -604
                                                                                                             41

              23                       Q1 24                                    23                        Q1 24                                    23                       Q1 24
                                                                                              (1)
      AR     RM inventory         FG inventory       AP                    Routine capex            Expansion capex

(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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 Management of account receivables & fraud

                                               Uncollectible receivables & internal fraud (as % of sales)
                  On-time collection
                                                                               2022           2023
                                               Sales team                      0.0000         0.0000
      Covid + inflation
                                   Inflation
       pressure + fuel
     subsidy reduction             pressure
                                               Non-sales team                  0.0000         0.0000

                                               Retail outlets                  0.0000         0.0013
          90.4%                    90.2%
                                               Total                           0.0000         0.0013
                                               Uncollectible receivables & internal fraud (IDR milion)
                                                                               2022           2023
                                               Sales team                           0              0

                                               Non-sales team                       0              0

                                               Retail outlets                       0             82
            22                         23      Total                                0             82



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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 market reach.
▪ Accelerate the deployment of tinting
     machines at retail outlets.
▪ Expand the distribution centres to strengthen
     product penetration and market presence.
▪ Continue to improve our service quality to
     deliver exceptional value and distinguish
     ourselves from competitors.
▪ Numerous Internal process and ESG               1st April 2024 - Avian Brands’ third factory construction in Cirebon, West Java

     improvements.




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