From Cleo Drinking Water To Building Depots, Conglomerate Hermanto Tanoko Is Able To Get Profit

Conglomerate Hermanto Tanoko. (Photo: Instagram @htanoko)

JAKARTA - The conglomerate Hermanto Tanoko through Tancorp owns several companies in the capital market. For example, bottled water producer PT Sariguna Primatirta Tbk (CLEO), and building materials retailer, PT Caturkarda Depo Bangunan Tbk (DEPO).

The two issuers are currently accelerating production and marketing expansion in 2022 in order to achieve performance growth targets. For example, CLEO, an issuer of bottled drinking water (AMDK) with shares owned by the Tanoko Group which reaches 81.37 percent through PT Tancorp Global Abadi and PT Tancorp Global Sentosa, recorded a sales increase of 30 percent to IDR 307.7 billion in the first quarter of 2022.

Meanwhile, CLEO net profit, which reached IDR 45.8 billion, rose 9 percent compared to the first quarter of 2021. CLEO's Deputy President Director, Melisa Patricia, said the increase was inseparable from the prospect of bottled drinking water continuing to grow, coupled with a surge in demand for drinking water.

"Therefore, we are committed to continuing to add factories and production capacity so that CLEO can continue to meet the drinking water needs of the Indonesian people," said Melisa.

Melisa said, CLEO continues to add new factories outside Java, namely Sumatra and Kalimantan. Each of these factories is projected to have a capacity of up to 100 million liters per year. This corporate action is in line with the high demand for bottled water and as the company's anticipation of the surge in demand.

To date, CLEO has 27 AMDK processing plants plus 3 other factories which are projected to be completed this year.

The Company so far has a distribution network spread across a number of regions in Indonesia, including Java, Sumatra, Kalimantan, Sulawesi, Bali, East Nusa Tenggara, West Nusa Tenggara, and Papua with a total network of 200 internal distributors and 1,515 total external distributors.

Building Depot expansion plan

Expansion outside Java is also being prepared by the Building Depot. Tancorp through PT Tancorp Surya Sukses is listed as one of the majority shareholders of DEPO with 23.5 percent ownership.

Director of PT Caturkarda Building Depot Erwan Irawan Noer said the company will expand to Sumatra. The market in the area is considered promising and not inferior to Java.

"Sumatra also has potential, the company already has an entrance in Lampung," said Erwan in a virtual public expose, Monday last week.

Currently, Depo Bangunan is preparing a new branch which will soon be opened at the end of 2022 in the Medan area. In addition, the company is also preparing to build a new store and office in Surabaya, East Java, which is scheduled to start operating at the end of the year.

The company explained that the capital expenditure or capex budget that will be used for this year's expansion is around IDR 80 billion, which comes from the proceeds from the initial public offering or IPO.

For information, the Building Depot started to take the floor on the Indonesia Stock Exchange (IDX) on November 25, 2021, with raised IPO funds of IDR 493.5 billion from 1.02 million shares at IDR 482 per share.

Depo Building targets revenues to increase close to pre-pandemic levels or increase by around 13 percent to 14 percent to IDR 2.6 trillion, from the 2021 position of IDR 2.3 trillion.

The net profit target is targeted to increase by 4.8 percent, exceeding net profit in 2021 which is in the position of IDR 88.08 billion. Last year's net profit was lower than the 2020 net profit of IDR 100.83 billion.