Pt Avia Avian Tbk · IDX:AVIA
Pt Avia Avian Tbk — Q3 2023 Earnings Presentation
21 slides from Pt Avia Avian Tbk's earnings presentation, 2023
Slide 1: PT Avia Avian Tbk Investor Presentation Q3 2023 Results
PT Avia Avian Tbk Investor Presentation Q3 2023 Results
Slide 2: Disclaimer
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
Slide 3: Avian Brands team
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 @avianbrand
Slide 4: Avian Brands Q3 2023 snapshot
Avian Brands Q3 2023 snapshot SALES GROSS PROFIT EBITDA NET PROFIT IDR 1.7 T IDR 697 B IDR 410 B IDR 334 B ( US$ 109 m ) ( US$ 46 m ) ( US$ 27 m ) ( US$ 22 m ) 42.1% 24.8% 20.2% EMPLOYEES DISTRIBUTION COVERAGE CUSTOMERS CENTERS 38 Provinces 56,000+ 8,000+ 156 99 Cities Retail outlets Convenience tra
Slide 5: Q3 financial performance highlights
Q3 financial performance highlights In IDR billion Q3 2023 Q3 2022 Change ▪ Consolidated sales went up by 4.9% in (except per share data) comparison to the same quarter last year. Consolidated sales 1,656 1,579 4.9% ▪ Growth was led by our architectural solutions segment, which was up by 5.1%. The t
Slide 6: Business update in Q3
Business update in Q3 ▪ The decline in the inflation rate was mainly due Indonesia inflation rate & CPI(1) to the high base effect caused by the increase in fuel prices in 2022. ▪ Price inflation is still evident in the primary goods 5.6% 5.2% 150.0 category, holding back the recovery in paint 145.0
Slide 7: New products launched in Q3
New products launched in Q3 Key Product Segments Price Range Premium 5 4 3 2 1 Economic Avitex Avitex Avitex Avitex Exterior Anti Viruz Gold Avitex Wizz Wall 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 W
Slide 8: Distribution centers expansion
Distribution centers expansion Benefits from the continued expansion of distribution centers: ▪ Improve product penetration and provide superior quality of service. ▪ Enhance customer relationships. ▪ Increase inventory management and minimize loss opportunities. ▪ In Q3 2023, we opened 2 wholly-own
Slide 9: Providing unmatched service quality
Providing unmatched service quality ~2 hours ~50% lower 30,000+ 100+ Delivery time Delivery cost Retail outlets Distribution centres The implementation of express delivery has been introduced to elevate various aspects of the business, including: ▪ Incentivize shops to sell more products without inc
Slide 10: Consolidated business – sales & customers
Consolidated business – sales & customers Q3 sales by value YTD Q3 sales by value Q3 number of customers YTD Q3 number of (IDR billion) (IDR billion) customers as % of total sales as % of total sales 23.6 ~24(1) 74.1 ~74(1) 54,573 55,101 5,164 49,561 49,593 1,656 4,958 1,579 22 23 22 23 22 23 22 23
Slide 11: Consolidated business
Consolidated business YTD Q3 sales by segment YTD Q3 sales by customers Trading goods Modern retail outlets 19% 7% 23% Wall 7% Other(1) 6% Woodcare(2) 25% Waterproofing 20% Wood & Metal Architectural solutions Traditional retail outlets 81% 93% (1) Includes roof paint, instant cement, automotive ref
Slide 12: Consolidated business - margin
Consolidated business - margin Gross margin – Q3 Gross margin – YTD Q3 42.1% 40.0% 44.2% 37.6% ▪ Gross margin for the architectural solutions segment improved in Q3, compared to the 22 23 22 23 same period last year, supported by EBITDA margin – Q3 EBITDA margin – YTD Q3 raw material stabilization.
Slide 13: Architectural solutions - sales
Architectural solutions - sales Q3 sales by value YTD Q3 sales by value Q3 sales by volume(2) YTD Q3 sales by volume(2) (IDR billion) (IDR billion) (metric ton) (metric ton) as % of total sales as % of total sales as % of total sales as % of total sales 22.8 ~23(1) 74.3 ~74(1) 22.2 ~23(1) 76.0 ~73(1
Slide 14: Architectural solutions - customers
Architectural solutions - customers Q3 number of customers YTD Q3 number of customers as % of total customers as % of total customers 89.7 91.3 89.7 91.1 45,285 48,967 50,191 44,448 Avian Brands customer gathering, Sukabumi 22 23 22 23 Avian Brands customer gathering, Cianjur 14
Slide 15: Trading goods – sales & customers
Trading goods – sales & customers Q3 sales by value YTD Q3 sales by value Q3 number of customers YTD Q3 number of (IDR billion) (IDR billion) customers as % of total sales as % of total sales as % of the total customers as % of the total customers 26.6 ~27(1) 73.2 ~73(1) 75.8 75.7 83.5 82.9 364 959
Slide 16: Gross margin
Gross margin Architectural solutions - Q3 Architectural solutions – YTD Q3 49.1% 50.4% ▪ Gross margin for the 44.2% 45.2% architectural solutions segment improved, driven by the stabilization of raw material prices. 22 23 22 23 Trading goods – Q3 Trading goods – YTD Q3 17.4% 18.1% 17.8% ▪ Gross marg
Slide 17: Well-managed cost structure
Well-managed cost structure Cost Breakdown (as % of sales) 2022 YTD Q3 2023 ▪ The company decided to be more aggressive in marketing G & A(1) 3.2% 3.2% activities and branding efforts in order to strengthen its brand Sales and marketing(1)(2) 15.3% 16.3% perception across the nation. COGS(1) 59.4% 5
Slide 18: Escalating marketing activities to increase brand awareness
Escalating marketing activities to increase brand awareness Indonesian celebrity sports tournament, Jakarta Homedec Expo, Tangerang Avitex Gold painting competition, Jakarta Paint Expo, Yogyakarta 18
Slide 19: Robust cash-flow generation & AR management
Robust cash-flow generation & AR management Trade working capital Free cash flow and On-time collection (IDR billion) capex (IDR billion) as % of total sales Covid + inflation 29.1 29.9 pressure + fuel Inflation subsidy reduction pressure 1,099 2,059 90.4% 89.8% 1,947 877 953 1,042 494 468 1,074 1,1
Slide 20: Updates on the third factory in Cirebon
Updates on the third factory in Cirebon ▪ The new manufacturing plant in Cirebon, which 2023 2024 2025 occupies an area of ~11 hectares of land, is currently in the final stage of landfilling process. ▪ The manufacturing facility is expected to be commissioned by 2025 with 225,000 tonnes per annum C
Slide 21: Guidance for 2023
Guidance for 2023 Adjustments on sales projection FY 2023: ▪ Value growth 8 - 12% 4% - 6% ▪ Volume growth 2 - 6% -1% - 1% Planned actions in Q4: ▪ Product innovation remains an integral part of our business to address the unmet and evolving consumer needs. ▪ Accelerate tinting machine deployment in