Surabaya, March 21, 2022 - PT Avia Avian Tbk. (“AVIA”), a leading decorative paint manufacturer in Indonesia, recorded positive performance growth until the end of 2021. As of December 2021, AVIA successfully posted a net profit of Rp1.4 trillion, an increase of 26% compared to the same period in 2020 which was Rp1.1 trillion. This achievement was supported by cost control efforts and continuous efficiency efforts, backed by the Company's operational excellence in producing raw materials internally, and consistently committing to implementing Environmental, Social and Governance (ESG) sustainability business practices in the Company's operational activities.
Wijono Tanoko as President Director of AVIA stated, “We are grateful for being able to overcome difficult times in 2021, as evidenced by the Company's success in booking revenues of Rp6.8 trillion, an 18% growth compared to the previous year. This increase is inseparable from various efforts made by the Company, one of which is new product innovation to meet the varied needs of dynamic market trends. In addition, we also continue to strive to implement sustainable business practices by using raw materials as well as more environmentally friendly gas and solar fuels.”
AVIA believes that implementing business with sustainability principles can further drive better business performance in the future. This is in line with a growing number of global investors who pay more attention to ESG aspects as one of the factors in their investment portfolio selection. Therefore, AVIA has considered the impacts caused by the production process, both for the community and for the surrounding environment. For this purpose, AVIA has used a more environmentally friendly gas-fired incinerator in its operational activities. This machine can reduce air pollution from printing ink thinner solvents. The heat generated by this machine can be used to dry printing results and is able to burn off the emitted solvent vapor more cleanly so that the surrounding community is not disturbed either by the emitted vapor or by the pungent odor from the factory.
Wijono further explained that the use of an incinerator also helps reduce the greenhouse gas effect because it can reduce emissions by using gas as fuel, thus also reducing the carbon footprint generated.
Furthermore, during the Covid-19 pandemic, AVIA was still able to maintain its market share as a leading decorative paint manufacturer in Indonesia. This is evident from various innovations carried out by R&D (Research & Development) researchers who are dedicated to continuously seeking innovative breakthroughs in creating value-added products, including the use of renewable and environmentally friendly paint products. AVIA believes that these innovations can open new avenues for the Company's performance growth, especially with its extensive network from Sabang to Merauke, which allows it to meet dynamic market needs.
“Seeing the increasingly recovering Indonesian GDP and economy, we hope that the decorative paint market in Indonesia will continue to grow. However, we also remain cautious in anticipating the ongoing pandemic. Moving forward, we are optimistic that we can continue to improve positive operational performance, supported by management with more than 30 years of experience and by our solid financial performance,” concluded Wijono.
***
About PT Avia Avian Tbk
PT Avia Avian Tbk. was founded in 1978 as an integrated paint manufacturing company. Known as Avian Brands, the Company has produced and sold a range of architectural solution products used in home construction. Some of the products produced by AVIA include wall paints, anti-leak coating paints, wood and iron paints, wood treatment paints, and others.
Listed on the Indonesia Stock Exchange (IDX) on December 8, 2021, with stock code (IDX: AVIA), the Company is a market leader in the decorative paint and coatings industry in Indonesia, with a total market share of approximately 20%, based on Avian Brands' sales revenue in 2020 generated from decorative paint and coating products, according to Frost & Sullivan. The Company has strong manufacturing capacity and capabilities through its manufacturing facilities in Sidoarjo and Serang, Indonesia, as well as the widest distribution network in Indonesia, which includes 105 self-owned distribution centers and 34 third-party distribution centers as of Q1-2022. All these distribution centers serve more than 54,500 building material stores throughout Indonesia.
