Pt Avia Avian Tbk · IDX:AVIA
Pt Avia Avian Tbk — Q1 2023 Earnings Presentation
22 slides from Pt Avia Avian Tbk's earnings presentation, 2023
Slide 1: PT Avia Avian Tbk Investor Presentation Q1 2023 Results
PT Avia Avian Tbk Investor Presentation Q1 2023 Results
Slide 2: Disclaimer
Disclaimer All investments are highly speculative in nature and involve a substantial risk of loss. We encourage our investors to invest very cautiously. We recommend that our investors seek personal advice from a professional investment advisor and conduct independent research before acting on any
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 Q1 2023 snapshot
Avian Brands Q1 2023 snapshot SALES GROSS PROFIT EBITDA NET PROFIT IDR 1.8 T IDR 807 B IDR 519 B IDR 417 B ( US$ 117 m ) ( US$ 53 m ) ( US$ 34 m ) ( US$ 27 m ) 45.3% 29.1% 23.4% EMPLOYEES DISTRIBUTION COVERAGE CUSTOMERS CENTERS 37 Provinces 56,000+ 8,000+ 150 98 Cities Retail outlets Convenience tra
Slide 5: Q1 financial performance highlights
Q1 financial performance highlights In IDR billion Q1 2023 Q1 2022 Change ▪ Consolidated sales increased 8.7%, driven by (except per share data) growth in the architectural solutions segment. Consolidated sales 1,782 1,639 8.7% ▪ Architectural solutions segment grew by 11.2%, driven by double-digit
Slide 6: Business update in Q1
Business update in Q1 ▪ The impact of high inflation continued in the first Indonesia Inflation Rate(1) quarter, affecting various industries in Indonesia. Nevertheless, the trend is starting to decline as 5.2% the Bank of Indonesia expects lower inflation this year. ▪ Total minimum wage increases s
Slide 7: New product launched in Q1
New product launched in Q1 Marine & protective Wall Wood & metal ▪ Admiral Anti Fouling and Admiral ▪ Brilliant Interior and Brilliant ▪ Avian Cling Zinc Chromate was Thinner Serbaguna were launched Exterior were launched on launched on February 8, 2023. In on January 19, 2023. These February 1, 202
Slide 8: Modern retail outlets expansion
Modern retail outlets expansion ▪ Avian Brands has succeeded in making a breakthrough in Ace Hardware's modern retail outlets. ▪ For the full year 2022, Ace Hardware has more than 220 retail outlets across the country. ▪ No Drop Anti Panas and No Drop waterproofing products were offered in 30 Ace Ha
Slide 9: 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 Q1 2023, we opened 4 wholly-owned DCs
Slide 10: Consolidated business segment
Consolidated business segment Q1 sales by value Q1 number of customers (IDR billion) as % of total sales 21.0 21.4 26.6 24.5 ~24(1) 49,466 49,921 47,915 1,801 1,782 45,288 42,288 1,639 1,190 1,226 19 20 21 22 23 19 20 21 22 23 (1) based on management estimation 10
Slide 11: Q1 sales split by regions
Q1 sales split by regions 10.9% 12.3% +18% +75% 9.2% 7.0% 7.8% +50% 5.2% 17.8% -19% 22.0% 51.2% -9% 56.5% ▪ Avian Brands sales by region compared to Indonesian GDP. AVIA ▪ In Jawa (Jakarta region) and Sumatra islands (northern part), we are behind Indonesian GDP. GDP(1) ▪ In Kalimantan, Sulawesi and
Slide 12: Consolidated business segment
Consolidated business segment Q1 sales by segment Q1 sales by customers Trading goods Modern retail outlets 16.3% 6.8% 1.7% Supporting 2.8% Furniture Product(1) 11.8% Pipe 24.7% Wall 7.6% Other(2) 5.9% Woodcare(3) 19.3% Wood & 26.2% Metal Waterproofing Architectural solutions Traditional retail outl
Slide 13: Consolidated business segment - margin
Consolidated business segment - margin Quarterly Gross margin 43.9% 41.7% 40.8% 41.3% 37.6% 42.4% 40.6% 45.3% FY 20 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Quarterly EBITDA margin 28.3% 29.3% 27.9% 26.4% 24.9% 29.1% 22.8% 22.3% FY 20 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Quarterly Net income m
Slide 14: Architectural solutions segment
Architectural solutions segment Q1 sales by value Q1 number of customers (IDR billion) as % of total sales as % of total number of customers 21.6 21.8 27.8 24.9 ~25(1) 77.2 87.8 89.5 89.8 90.9 44,404 45,362 42,860 1,491 39,781 1,475 1,341 32,645 970 984 19 20 21 22 23 19 20 21 22 23 (1) based on man
Slide 15: Architectural solutions segment - volume
Architectural solutions segment - volume Q1 sales by volume(2) ▪ Volume increased by 1.8% compared to the same (metric ton) quarter last year, driven by growth in the wall category. ▪ In mid-tier wall category, Avitex Gold sales trend was as % of total volume very robust. 21.5 21.9 27.9 25.8 ~25(1)
Slide 16: Trading goods segment
Trading goods segment Q1 sales by value Q1 number of customers (IDR billion) as % of total sales as % of total number of customers 18.8 19.8 22.1 22.7 ~20(1) 74.8 77.2 75.1 74.9 77.1 38,507 35,989 37,071 325 34,965 298 290 31,630 242 220 19 20 21 22 23 19 20 21 22 23 (1) based on management estimati
Slide 17: Quarterly gross margin
Quarterly gross margin Architectural solutions segment ▪ Gross margin for the 3x 3%-8% 3%-5% 3%-5% 3%-5% Price increase Price increase Price increase Price increase Price increase architectural solutions (1 March) (1 May) (1 July) (1 Nov) segment significantly improved in the first 51.8% 47.8% 46.2%
Slide 18: Well-managed cost structure
Well-managed cost structure Cost Breakdown (as % of sales) 2019 2020 2021 2022 Q1 23 ▪ G&A expenses declined in the first G & A(1) 3.5% 2.8% 2.7% 3.2% 2.9% quarter, supported by the top line Sales & Marketing(2) 15.8% 16.0% 13.1% 15.3% 15.1% growth. COGS(3) 58.6% 56.1% 58.3% 59.4% 54.7% Total 77.9%
Slide 19: COGS breakdown
COGS breakdown 2019 2020 2021 2022 Q1 23 Raw materials 51.8% 47.5% 58.2% 53.9% 52.6% ▪ Raw materials and Direct labor 1.9% 2.1% 1.9% 1.9% 1.7% direct labor as a % of COGS declined due Factory overhead 3.7% 4.2% 4.2% 4.2% 4.3% to improvement in WIP and FG 31.1% 33.8% 24.8% 26.4% 26.2% the top line. B
Slide 20: 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 28.6 1,306 1,844 1,947 2,041 1,123 1,099 1,694 1,519 927 953 898 789 719 793 520 463 494 360 288 1,001 1,166 1,074 1,225 938 277 -392 -489 -545 167 191 -769
Slide 21: Management of account receivable & fraud
Management of account receivable & fraud Uncollectible receivables & internal fraud (as % of sales) On-time collection 2018 2019 2020 2021 2022 Election Covid Covid Covid + inflation Sales team 0.0020 0.0023 0.0000 0.0012 0.0000 year pressure + fuel subsidy reduction Non-sales 0.0004 0.0000 0.0000 0
Slide 22: Guidance for 2023
Guidance for 2023 Sales projection FY 2023: ▪ Value growth 8 – 12%. ▪ Volume growth 2 - 6%. Planned actions in Q2 and Q3: ▪ In May, we will implement a price hike for most of our solvent-based products (wood & metal, wood care, and others) in responding to pressures from solvent-based related raw ma