Cimory, Milk And Yoghurt Producer Owned By Conglomerate Bambang Sutantio Budgets Rp1.18 Trillion In Capex, 50 Percent Of It To Increase Kanzler's Sausage, Meatballs And Nugget Production

Cimory Dairyland. (Photo: Doc. Cimory)

JAKARTA - The milk and yogurt producer owned by conglomerate Bambang Sutantio, PT Cisarua Mountain Dairy Tbk (CMRY) alias Cimory, said it would focus on expanding in the domestic market. The company wants to maintain a stable average selling price (ASP) as one of the expansion strategies.

Director of Cimory Bharat Shah Joshi said CMRY will not increase product prices in the near future and prefers to look at economic conditions in the long term.

"The strategy is still not to increase the price," said Bharat in the "Emiten Talk" event, in Jakarta, Thursday, August 11.

CMRY has prepared funds to expand its business this year. However, the directors of CMRY said that the expansion plan will see how the consumption pattern of customers is with the economic recovery after the COVID-19 pandemic.

Bharat said the opening of shopping centers after the economic recovery could increase sales. Of the Rp1.18 trillion capex funds, as much as 50 percent has been disbursed for expansion.

Bharat said that CMRY's expansion plan is to increase capacity for the long term for various products ranging from milk, yogurt, and consumer goods. The consumer goods products are sausages, chicken nuggets, and meatballs under the Kanzler brand.

"Actually, this is expenditure for the next 3-4 years," he said.

For information, CMRY recorded a profit of Rp. 581.11 billion in the second quarter of 2022 (unaudited report). Bharat previously said that so far, the penetration of dairy and meat products produced by Cimory has only reached Java-Bali and parts of Sumatra.

CMRY received a net initial public offering (IPO) of Rp3.58 trillion at the end of last year. CMRY reported that it had used Rp825.5 billion in proceeds from the IPO. The funds are used for capital expenditures, distribution channel expansion, as well as for operational working capital and other activities.

In detail, Cimory used capital expenditures to increase production capacity of Rp. 533.9 billion, from the planned use of funds according to the prospectus of Rp. 1.18 trillion. These funds were realized in the form of factory expansion and machine purchases.