Cleo Drink Manufacturer Profit Increases 92.5 Percent To IDR 115.3 Billion In The First Quarter Of 2024

Cleo (Photo: Cleo's website)

JAKARTA - Packaged drinking water producer (AMDK) Cleo, PT Sariguna Primatirta Tbk (Tanobel Group) managed to record a consolidated net profit of IDR 115.3 billion in the first quarter of 2024. This achievement increased by 92.5 percent compared to the consolidated profit for the same period in 2023 which amounted to IDR 59.9 billion.

The increase in profit was achieved, among others, thanks to the acquisition of CLEO consolidated sales in the first quarter of 2024 which reached IDR 626.5 billion. This sales acquisition increased 38 percent from the same quarter the previous year which amounted to IDR 455.4 billion.

The significant sales growth was supported by more than 31 drinking water factories belonging to the Company, which make CLEO the AMDK producer with the most factories in Indonesia.

"This achievement is in accordance with the direction of our expected performance, where the Company always targets double-digit growth every year for both sales and net profit. To support this, in 2024 CLEO has again made an aggressive expansion plan in developing factories and distribution points," said CEO of CLEO Melisa Patricia in a written statement, Sunday, May 12.

By making the expansion of new factories and distribution networks the main strategy, CLEO intends to get closer to customers while reducing transportation costs. In this case, expansion is prioritized in areas outside Java and Bali that have not been touched by CLEO marketing services.

Regarding this expansion strategy, the Company has prepared investment funds of IDR 450 billion, which will be used for the addition of new factories in Palu, Pontianak and Pekanbaru, the development of existing factories, additional machinery to increase production and automation capacity, to the expansion of distribution networks.

As for supporting the distribution network expansion strategy, CLEO has carried out vertical integration over the supply chain of distribution business that has been running PT Sentralsari Primasentosa (PT SPS). Through this vertical integration, it is hoped that the distribution team will be more solid, effective and efficient in working.

CLEO's advantage lies in its ability to achieve sales growth and consistent double-digit consolidated net profit since the start of the IPO.

CAGR sales of CLEO from 2017 to 2023 were recorded at 20.3 percent, and CAGR net profit in the same period was recorded at 36.7 percent.

This achievement shows that the current increase in sales is not a coincidence, but the result of well-planned strategies and strong executions as well as a professional and experienced team of human resources and management and resources. CLEO has successfully utilized integrated production and distribution infrastructure.