CSAP Books 144 Percent Rise In Net Profit To Rp220 Billion In 2021, Targets To Have 100 Partners10 By 2030

Photo: Doc. Chess Sentosa Adiprana

JAKARTA - PT Catur Sentosa Adiprana Tbk (CSAP) posted solid performance growth throughout 2021. The owner of the modern retail network Mitra10 and Atria managed to record a surge in net profit (comprehensive profit attributable to the parent entity by 144 percent to Rp220 billion, compared to the previous period). the same in 2020, which is Rp. 90 billion.

This achievement was supported by CSAP sales which reached Rp. 14.24 trillion in 2021, growing 12.5 percent when compared to the same period last year of Rp. 12.65 trillion. Sales of purchase and sale items were recorded at Rp. 13.5 trillion, while consignment sales were at Rp. 730.1 billion throughout 2021.

Corporate Secretary of PT Catur Sentosa Adiprana Tbk Idrus Widjajakusuma in a written statement, Sunday, April 17, said the slick performance throughout 2021 was supported by the two business segments owned by the company, namely the distribution segment which contributed 64 percent and the retail segment which contributed 36 percent to net sales.

The Distribution Segment which serves the distribution of building materials, chemicals and consumer goods throughout 2021 grew 12.7 percent, while the Retail Segment represented by Mitra10 and Atria managed to grow 12 percent.

"This achievement is a separate note considering the limitations of operations and activities during the pandemic," said Idrus.

Solid sales performance and low growth in the cost of goods sold for sale had a positive impact on CSAP's gross profit. Throughout 2021 gross profit was recorded at Rp.2.29 trillion, growing 16.1 percent compared to the same period last year of Rp.1.97 trillion. Positive performance was also recorded as operating profit, after deducting operating expenses and adding other operating income. Operating profit was recorded at IDR 516.60 billion, a convincing growth of 58.2 percent.

Meanwhile, profit before tax was recorded at IDR 288.06 billion, grew 15 percent compared to the same period in 2020, which was IDR 114.75 billion.

Expansion strategy

CSAP continues its aggressive expansion in the modern retail segment, where in 2022 the company plans to add 4 new Mitra10 stores and 4 new Atria stores. From this target, 1 43rd Mitra10 new store was inaugurated in January 2022 in Pekanbaru city and 2 16th Atria showroom in Pekanbaru, Riau and the 17th was inaugurated in early April 2022 in Pasar Baru, Tangerang.

Furthermore, Mitra10 will follow in Cibinong - Bogor, Jakarta (Pondok Bambu) and Lampung. In addition to opening new stores, the Company also plans to re-model 4 of Mitra10's old stores.

Thus, by the end of 2022, CSAP will have 46 Mitra10 stores and 19 Atria stores. CSAP is optimistic that the target of 50 Mitra10 stores will be achieved by 2023 and will make Mitra10 the largest and most comprehensive modern retail network in Indonesia.

"The company assesses that the modern retail segment has a very wide space to grow bigger considering the population of Indonesia and its very wide coverage area, as well as providing the potential for a larger profit margin contribution compared to the distribution segment," said Idrus.

Not to forget, the performance of the distribution segment will also be improved by expanding its network to 5 depots in the areas of Central Java, East Java, West Kalimantan and East Kalimantan.

In addition, the company also redesigned the supply chain system by expanding and renovating the warehouse in Kapuk for private brands, developing digital applications, automation and replenishment processes to increase productivity. Including improving the transportation system to support supply chain activities and reduce transportation costs.

Currently, CSAP has 43 Building Material Distribution Branches in 40 big cities, 4 Chemical distribution branches, 38 consumer goods (FMCG) distribution areas. In the Retail segment, the Company has 43 Mitra10 Retail Modern Building Materials & Home Improvement outlets, as well as 17 Atria Retail Modern Home Furnishing outlets in major cities in Indonesia such as Jabotabek, Cikarang, Karawang, Cirebon, Yogyakarta, Solo, Sidoarjo, Semarang, Tegal. Surabaya, Malang, Denpasar, Lampung, Palembang, Batam, Medan, Pekanbaru, Makassar, Balikpapan and Banjarmasin.

In the 2022 period, CSAP, which targets sales growth of 11 percent and net profit growth of 18 percent, has prepared capital expenditures (capex) of Rp600 billion.

80 percent of the funds are allocated for the development of the Mitra10 and Atria modern retail segments. Meanwhile, 20 percent will be used in the distribution segment for warehouse expansion, renovation, rejuvenation of vehicles, equipment and technology.

Management believes that the prospect of the property industry will continue to improve, especially since the government has expressed optimism over the national economic growth of 5.2 percent. The improvement in the handling of the pandemic and the increasing number of community activities after the prevalence of booster vaccines have also become positive catalysts for Indonesia's economic growth and especially for the company.

CSAP assesses that it is time for the national economy to move forward and the company must be able to take advantage of this opportunity to meet customer needs for building materials and at the same time become a market leader.

With the support of the controlling and major shareholders who are committed to increasing the company's capacity and value, CSAP targets to have 100 Mitra10 stores by 2030. This long-term plan is to continue the expansion target of 50 Mitra10 outlets which will be achieved in 2023.