Surabaya, April 13, 2023 - PT Avia Avian Tbk. ("AVIA") held the Annual General Meeting of Shareholders (AGMS) for the 2022 Financial Year on Thursday, April 13, 2023. The AGMS was held at Avian Office Tower, Surabaya. This AGMS was attended by 60,387,654,078 shares, representing 97.5% of the 61,953,555,600 total shares issued by the Company. The AGMS discussed 5 (five) agendas and resulted in several decisions, including the determination of cash dividend distribution to shareholders.
The AGMS approved the distribution of cash dividends totaling Rp1.3 trillion, or equivalent to USD88.6 million, from the Company's net profit for the 2022 financial year. This amount includes an interim dividend of Rp619.5 billion which was distributed to shareholders on December 6, 2022. AVIA recorded a net profit performance of Rp1.4 trillion in 2022, bringing the dividends distributed by AVIA to a Dividend Payout Ratio (DPR) of 92.9% of the 2022 net profit. The solid and strong financial performance and position in 2022, as also reflected in AVIA's liquidity level reaching 786.6% on December 31, 2022, enable AVIA to continue providing returns and added value to its shareholders, among others through dividend payments. The dividend payout ratio level of 92.9% for the 2022 financial year is 42.9% above the Company's general dividend policy, which is a minimum of 50% of the Company's net profit, distributed to the Company's shareholders as a special dividend for this 2022 financial year, after also considering the working capital needs budget, capital expenditure (CAPEX) budget, business development, and other related matters.
AVIA successfully closed 2022 with positive achievements in Q4 2022, despite facing challenging conditions throughout 2022, where in Q4 2022, AVIA was able to record sales of Rp1.7 trillion, an increase of approximately 10% compared to total sales in Q3 2022, which stood at Rp1.6 trillion. This positive achievement was also reflected in the increase in AVIA's gross profit in Q4, which was recorded at Rp736.7 billion, an increase of approximately 24.1% compared to gross profit in Q3 2022, which was recorded at Rp593.6 billion, with AVIA's gross profit margin in Q4 2022 also increasing positively to 42.4% compared to the gross profit margin in Q3 recorded at 37.6%. The gross profit achievement in Q4 2022 was also more positive than the gross profit in Q4 2021, which was recorded at Rp705.2 billion with a gross profit margin of 40.8%. Overall, AVIA recorded total sales of Rp6.7 trillion throughout 2022. The Waterproofing, Wall Paint, and Wood & Metal segments remained the Company's main sales drivers. For information, for 2023, the planned routine capital expenditure (CAPEX) budget is 2% of total sales, in addition to the construction of the third factory in Cirebon which will require expansion capital expenditure (CAPEX) of approximately 2.5% of total sales. The third factory, which will eventually become the Company's largest factory, is targeted to begin operations in early 2026. For 2023, AVIA will continue to add distribution centers to increase product penetration throughout Indonesia.
As the holder of the largest market share for decorative paints in Indonesia, AVIA continuously strives to produce new product breakthroughs to enrich its product portfolio. During 2022, a total of 11 new products were launched, four of which are Green Label Singapore certified. One of the products launched in September 2022 is Avitex Gold in the Wall Paints segment. Avitex Gold can be applied to both exterior and interior parts of homes and is one of the Green Label Singapore certified products. This product was launched to strengthen AVIA's position in the market, especially for the Wall Paints segment. Furthermore, AVIA also launched VIP Wall Paint Remover in December 2022. This product is capable of stripping up to 24 layers of paint on walls without damaging the surface or wall pores. The use of this product is also free from the risk of skin irritation.
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A Glimpse of PT Avia Avian Tbk
PT Avia Avian Tbk. was founded in 1978 as an integrated paint manufacturing company. Known as Avian Brands. For more than 4 decades, Avian Brands has brought color to the lives of millions of Indonesian families, through a variety of products including Sunguard All in One, Supersilk Anti Stain, and Avitex wall paints, No Drop waterproofing coating, and Avian wood & metal paints.
Listed on the Indonesia Stock Exchange (IDX) on December 8, 2021, with the stock code (IDX: AVIA), AVIA is a market leader in the decorative paint and coating industry in Indonesia, with a total market share of over 23%, based on sales in 2020 generated from decorative paint and coating products, according to Frost & Sullivan. AVIA possesses strong manufacturing capacity and capability through AVIA's manufacturing facilities in Sidoarjo and Serang, as well as the widest distribution network in Indonesia, which includes 109 self-owned distribution centers and 37 third-party distribution centers by the end of 2022. All these distribution centers serve more than 56,000 building material stores throughout Indonesia. Since 2020, Avian Brands has had its first research, development, and innovation center in Indonesia named Avian Innovation Center (AIC), covering an area of 5,000 square meters, and as a form of Avian Brands' commitment to environmental management, occupational health and safety, and GCG (Good Corporate Governance) in accordance with international standards, Avian Brands has successfully obtained and implemented ISO 14001:2015 (Environmental Management), ISO 45001:2018 (Occupational Health and Safety Management System), ISO 50001:2018 (Energy Management System), as well as 26000:2010 (Guidelines for GCG, social responsibility, Social Harassment, and Gender Equality). The presence of Avian Brands aims to provide leading benefits and contribute to coloring Indonesia.
