Pt Avia Avian Tbk · IDX:AVIA
Pt Avia Avian Tbk — Q2 2023 Earnings Presentation
23 slides from Pt Avia Avian Tbk's earnings presentation, 2023
Slide 1: PT Avia Avian Tbk Investor Presentation Q2 2023 Results
PT Avia Avian Tbk Investor Presentation Q2 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 Q2 2023 snapshot
Avian Brands Q2 2023 snapshot SALES GROSS PROFIT EBITDA NET PROFIT IDR 1.7 T IDR 777 B IDR 495 B IDR 390 B ( US$ 116 m ) ( US$ 52 m ) ( US$ 33 m ) ( US$ 26 m ) 45.0% 28.7% 22.6% EMPLOYEES DISTRIBUTION COVERAGE CUSTOMERS CENTERS 38 Provinces 56,000+ 8,000+ 151 99 Cities Retail outlets Convenience tra
Slide 5: Q2 financial performance highlights
Q2 financial performance highlights In IDR billion Q2 2023 Q2 2022 Change ▪ Consolidated sales in Q2 were flat compared to (except per share data) last year. There was a last bite for the Consolidated sales 1,726 1,740 -0.8% architectural solutions segment last year. ▪ The trading goods segment perf
Slide 6: Business update in Q2
Business update in Q2 ▪ The inflation rate is declining for the first time Indonesia inflation rate & CPI(1) since the beginning of 2022 and has touched the 4% mark. 5.6% 140.0 ▪ Price inflation impacting consumers' purchasing 4.0%135.0 power is still evident in Q2, as shown by the high 4.6% CPI for
Slide 7: New products launched in Q2
New products launched in Q2 Marine Marine Wall ▪ Admiral Wood Filler Epoxy was ▪ Admiral Cat Kapal was launched ▪ Aries Bling was launched on May launched on April 1, 2023. on May 1, 2023. 22, 2023. ▪ This is the first epoxy adhesive with ▪ This product has been formulated ▪ We introduced this produ
Slide 8: Distribution centers expansion
Distribution centers expansion Benefits from continued expansion of distribution centers: ▪ Improve product penetration and provide superior quality of service. ▪ Enhance customer relationships. ▪ Increase inventory management and minimize loss opportunity. ▪ In Q2 2023, we opened 1 wholly-owned DCs
Slide 9: Consolidated business segment - sales
Consolidated business segment - sales Q2 sales by value H1 sales by value (IDR billion) (IDR billion) as % of total sales as % of total sales 24.6 22.6 21.1 26.0 ~23(1) 45.6 44.0 47.7 50.5 ~48(1) 1,740 1,726 3,508 3,379 3,234 1,395 1,433 1,296 2,585 2,522 19 20 21 22 23 19 20 21 22 23 (1) Based on m
Slide 10: Consolidated business segment - customers
Consolidated business segment - customers Q2 number of customers H1 number of customers 52,736 53,045 50,769 49,591 49,168 47,220 43,938 47,374 41,261 44,255 19 20 21 22 23 19 20 21 22 23 10
Slide 11: H1 sales split by regions
H1 sales split by regions 11.1% 12.0% +24% +75% The rest of Indonesia 9.0% 6.9% 8.1% Kalimantan Sulawesi +58% 5.1% Sumatra 17.0% -22% 21.8% Java 51.8% -9% 57.2% ▪ In Java (Jakarta region) and Sumatra islands (northern part), we are behind Indonesian GDP. AVIA ▪ The island of Sumatra experienced head
Slide 12: Consolidated business segment
Consolidated business segment H1 sales by segment H1 sales by customers Trading goods Modern retail outlets 17.7% 7.4% 1.8% Supporting 3.0% Furniture Product(1) 12.9% Pipe 23.7% Wall 7.5% Other(2) 6.0% Woodcare(3) 25.7% 19.5% Wood & Waterproofing Metal Architectural solutions Traditional retail outl
Slide 13: Consolidated business segment – margin
Consolidated business segment – margin Quarterly Gross margin 41.7% 40.8% 41.3% 37.6% 42.4% 40.6% 45.3% 45.0% FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Quarterly EBITDA margin 29.3% 27.9% 26.4% 24.9% 29.1% 28.7% 22.8% 22.3% FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Quarterly Net income m
Slide 14: Architectural solutions segment - sales
Architectural solutions segment - sales Q2 sales by value H1 sales by value (IDR billion) (IDR billion) as % of total sales as % of total sales 25.8 23.3 21.2 26.5 ~24(1) 47.3 45.2 49.0 51.4 ~49(1) 2,888 1,428 1,397 2,769 2,599 1,159 1,123 1,052 2,128 2,035 19 20 21 22 23 19 20 21 22 23 (1) Based on
Slide 15: Architectural solutions segment - volume
Architectural solutions segment - volume Q2 sales by volume(2) H1 sales by volume(2) (metric ton) (metric ton) as % of total volume as % of total volume 26.5 23.6 21.9 28.0 ~24(1) 48.1 45.5 49.8 53.8 ~49(1) 45,322 45,050 91,805 86,684 39,492 40,417 39,571 82,152 81,963 76,094 19 20 21 22 23 19 20 21
Slide 16: Architectural solutions segment - customers
Architectural solutions segment - customers Q2 number of customers H1 number of customers as % of total number of customers as % of total number of customers 88.4 89.1 89.5 90.1 91.3 88.0 88.5 89.4 89.9 91.1 47,388 48,323 44,704 44,872 45,397 42,272 41,917 39,170 38,929 36,487 19 20 21 22 23 19 20 2
Slide 17: Trading goods segment - sales
Trading goods segment - sales Q2 sales by value H1 sales by value (IDR billion) (IDR billion) as % of total sales as % of total sales 20.1 20.0 21.0 23.8 ~23(1) 38.9 39.7 43.1 46.6 ~43(1) 635 620 330 610 310 312 487 245 456 236 19 20 21 22 23 19 20 21 22 23 (1) Based on management estimation 17
Slide 18: Trading goods segment - customers
Trading goods segment - customers Q2 number of customers H1 number of customers as % of total number of customers as % of total number of customers 71.2 73.7 72.6 73.4 73.3 78.9 80.2 79.6 80.5 80.3 42,474 42,600 36,396 36,041 40,409 34,298 38,015 32,367 34,904 29,372 19 20 21 22 23 19 20 21 22 23 18
Slide 19: Quarterly gross margin
Quarterly gross margin Architectural solutions segment 2%-3%(1) Price increase ▪ Gross margin 3x 3%-8% 3%-5% 3%-5% 3%-5% (7 May) continues to improve Price increase Price increase Price increase Price increase Price increase due to stabilization of (1 March) (1 May) (1 July) (1 Nov) 50.6% 51.4% raw
Slide 20: Well-managed cost structure
Well-managed cost structure Cost Breakdown (as % of sales) 2019 2020 2021 2022 1H 23 G & A(1) 3.5% 2.8% 2.7% 3.2% 3.2% ▪ The decline in COGS as a % of sales was Sales & Marketing(1)(2) 15.8% 16.0% 13.1% 15.3% 15.6% attributable to the raw material COGS(1) 58.6% 56.1% 58.3% 59.4% 54.8% stabilization.
Slide 21: Robust cash-flow generation
Robust cash-flow generation Trade working capital Free cash flow and capex (IDR billion) (IDR billion) as % of total sales 29.9 26.5 27.2 29.1 27.0 1,306 1,844 1,947 1,893 1,123 1,099 1,694 1,519 927 953 1,005 789 793 764 719 520 494 429 360 288 1,001 1,166 1,074 1,207 938 -392 167 191 -489 -574 149
Slide 22: Management of account receivable
Management of account receivable ▪ We saw a slight decline in on-time collection in the first On-time collection quarter, which we consider reasonable given the business dynamics in Indonesia, where many retail outlets are facing weaker market demand. Election year Covid Covid Covid + inflation Infl
Slide 23: Guidance for 2023
Guidance for 2023 Sales projection FY 2023: ▪ Value growth 8 – 12%. ▪ Volume growth 2 - 6%. Planned actions in Q3 and Q4: ▪ Innovation remains a key strategy to drive new product launches and ensure long-term viability. ▪ Expansion of distribution centres will continue to increase market penetration