Surabaya, 03 May 2023 - PT Avia Avian Tbk. (“AVIA”) announced its financial performance report for the first quarter of 2023. In the first quarter of this year, total sales successfully booked amounted to Rp1.8 trillion, growing by 8.7% compared to the same quarter last year of Rp1.6 trillion. The Architectural Solutions segment experienced a sales increase of 11.2% from Rp1.3 trillion to Rp1.5 trillion, especially supported by double-digit growth in the Wall Paint category. Gross profit margin was recorded at 45.3% or equivalent to Rp807 billion. Gross profit margin grew by 4.5% compared to the first quarter of last year, supported by the stabilization of raw material prices. In addition, EBITDA margin and net profit were at 29.1% or equivalent to Rp519 billion and 23.4% or equivalent to Rp417 billion, respectively. EBITDA margin increased by 1.2% compared to the same period last year, supported by increased sales and gross profit, as well as operational cost efficiency. For your information, unlike the first quarter of last year, AVIA did not implement price hikes this year.
Amidst the fluctuations in Indonesia's economy influenced by high inflation rates, AVIA continues to strive to expand its distribution network spread across all regions of Indonesia. In the first quarter of this year, AVIA added 4 self-owned distribution centers, along with 6 mini distribution centers. As of now, the total number of self-owned distribution centers is 113 locations, plus third-party distribution in 37 locations and mini distribution centers in 10 locations. This expansion of distribution centers demonstrates AVIA's commitment to providing maximum service to customers, especially regarding fast and timely delivery of goods. In the first quarter of this year, more than 49,900 customers from a total of more than 56,000 building material stores made purchasing transactions. This number of customers increased by more than 400 stores compared to the same period last year. The growth in the number of customers is one of the important metrics continuously observed by management to measure the penetration level of AVIA products in the market.
In addition to expanding its distribution network, AVIA also continues to innovate to create the best quality products that can meet customer needs. Throughout the first quarter of this year, AVIA has launched several new product innovations, including Boyo Politur Melamin in the Wood Care category and Avian Zinc Chromate in the Wood & Iron Paint category. Furthermore, AVIA also introduced new products in the Marine Paint category, namely Admiral Anti Fouling and Admiral Thinner Serbaguna (All-Purpose Thinner). In the Wall Paint category, Brilliant Exterior and Brilliant Interior were launched in February. Various new products were launched across different categories with the aim of strengthening AVIA's position as a market leader. AVIA's sales are still dominated by architectural solution products, contributing approximately 84%, while the remaining 16% comes from the merchandise segment, including PVC pipes, supporting products, household furniture, and so on.
AVIA is also in the process of constructing its third factory located in Cirebon. Construction started last February and is targeted to begin operations in early 2026. This third factory has a higher capacity compared to AVIA's factories located in Sidoarjo and Serang, with a total capacity reaching 225,000 Metric Tons (MT). Going forward, AVIA remains focused on taking various strategic steps, including expanding distribution centers, product innovation, and marketing activities to seize opportunities and achieve sustainable long-term growth.
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About PT Avia Avian Tbk
PT Avia Avian Tbk. was established in 1978 as an integrated paint manufacturing company. Known as Avian Brands. For over 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 anti-leak coating paint, and Avian wood & iron paints.
Listed on the Indonesia Stock Exchange (IDX) on December 8, 2021, with stock code (IDX: AVIA), AVIA is a market leader in the paint and decorative coatings industry in Indonesia, with a total market share of more than 23%, based on sales in 2020 generated from paint and decorative coating products, according to Frost & Sullivan. AVIA has strong manufacturing capacity and capabilities 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 the first research, development, and innovation center in Indonesia called the Avian Innovation Center (AIC), spanning 5,000 square meters, and as a form of Avian Brands' commitment to environmental, occupational health and safety management, as well as 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 existence of Avian Brands aims to provide leading benefits and contribute to coloring Indonesia.
