SURABAYA, 03 November 2023 – PT Avia Avian Tbk (“AVIA”), the largest decorative paint producer in Indonesia and the only paint producer listed on the stock exchange, successfully recorded sales of Rp 5.2 trillion for the nine-month period of 2023, growing 4.1% compared to the same period last year. The Company's sales growth was driven by efforts undertaken by the Company amidst challenging national economic conditions.
Mr. Ruslan Tanoko, AVIA's Deputy President Director, stated that this growth was driven by the increasingly complete range of AVIA products. As known, by the end of September 2023, AVIA had launched several economic versions of its main products that have been very well-known to the public. These product variants include Avian Cling for the wood and iron paint category, Avitex Wizz and Aries Bling for the wall paint category, and the latest, No Drop Basic, for the waterproofing coating category. These products serve as an anticipation of weakening public purchasing power, and have proven to contribute well to the Company's sales growth. As known, waterproofing coatings, wall paints, and wood and iron paints are the largest contributors to AVIA's sales, accounting for 25%, 23%, and 20% respectively.
In addition to more economical product variants, AVIA previously launched Avitex Gold for the wall paint category with the advantage of being usable for both interior and exterior, and it has been very well-received by the public, contributing approximately 5% of sales since its launch late last year.
Besides launching several new product variants, AVIA has also consistently expanded its distribution network. By the end of September this year, AVIA had 116 distribution centers with 14 mini distribution centers, spread across all provinces and reaching all cities in Indonesia. AVIA continues to strive to improve its one-day delivery service within a 50 km radius from the current achievement of 96%.
AVIA's sales growth was accompanied by growth in gross profit, EBITDA, and net profit. By the end of September 2023, AVIA recorded a gross profit of Rp 2.3 trillion with a margin level of 44.2%, growing 15.2% compared to the same period last year with a margin of 40.0%. EBITDA for the same period was recorded at Rp 1.4 trillion, with a margin of 27.6%, growing 11.5% compared to the same period last year. Furthermore, net profit for the nine-month period was recorded at Rp 1.1 trillion, with a margin of 22.1%.
Strong profit and cash flow growth makes us confident that we will continue to maximize dividend distribution for shareholders.
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About PT Avia Avian Tbk
PT Avia Avian Tbk. was established in 1978 as an integrated paint manufacturing company. It is known as Avian Brands. For over 4 decades, Avian Brands has colored the lives of millions of Indonesian families through a diverse range of products, including Sunguard All in One, Supersilk Anti Stain, and Avitex wall paints, No Drop waterproofing coating, and Avian wood & iron paints.
Listed on the Indonesia Stock Exchange (IDX) on December 8, 2021, with stock code (IDX: AVIA), AVIA is the largest decorative paint manufacturer and a market leader in the decorative paint and coating industry in Indonesia, based on a survey conducted by Frost & Sullivan. Currently, AVIA controls approximately 23% market share in the decorative paint and coating industry in Indonesia. AVIA has strong manufacturing capacity and capabilities through its manufacturing facilities in Sidoarjo and Serang, supported by vertical integration capabilities that allow AVIA to produce raw materials internally. AVIA also has the widest distribution network in Indonesia, comprising 116 self-owned distribution centers, 14 self-owned mini distribution centers, and 40 third-party distribution centers by the end of the first semester of 2023. All these distribution centers serve more than 56,000 building material stores across Indonesia. Since 2020, Avian Brands has had the first research, development, and innovation center in Indonesia called Avian Innovation Center (AIC), spanning 5,000 square meters. As a testament to 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), and 26000:2010 (Guidelines for GCG, social responsibility, social harassment, and gender equality). The presence of Avian Brands aims to provide cutting-edge benefits and contribute to coloring Indonesia.
