Avian Paint Company Owned By Conglomerate Hermanto Tanoko Targets 12 Percent Revenue Growth This Year

Management of PT Avia Avian Tbk. (Photo: Doc. Avian)

JAKARTA - Paint producer owned by conglomerate Hermanto Tanoko, PT Avia Avian Tbk (AVIA) targets revenue growth of up to 12% until the end of 2023.

Head of Investor Relations of AVIA Andreas Timothy Hadikrisno said that in 2023 there will be many challenges that the company will face, ranging from high interest rates to political levies before the presidential election which can affect people's purchasing power. Understandably, 99 percent of the company's market is retail, while for projects it is still around 1 percent.

However, the company is optimistic that performance will be able to grow supported by the innovations that will be carried out. One of them is by launching a new product, namely VIP Remover to peel old paints and economic products, Avian Cling.

Still from the product, AVIA will also boost the penetration of Avitex Gold which was launched last year. Andreas said this was to seize the wall painting market, especially in the Jakarta area.

"We are late for the wall painting segment in Jakarta because it will only enter in 2020," he said, quoted on Thursday, April 6.

Another strategy is to strengthen the distribution network. AVIA plans to add nine self-owned distribution centers and nine third-party distribution centers.

Then, in May 2023, the company also plans to increase the selling price of paint again. In particular, for paints whose basic ingredients are affected by price increases. "It's just that the amount has not been determined because it's still a plan," he said.

Last year, AVIA had increased its selling price six times with a total accumulated 25 percent increase. Andreas said the price increase was following competitors who also increased prices.

Of these, the company targets revenue growth of 8-12 percent until the end of 2023.

"With the minimum assumption, the revenue target is IDR 7.22 trillion," he explained.

As for 2022, AVIA scored revenue of IDR 6.69 trillion. This achievement decreased 1.26 percent compared to 2021 of IDR 6.77 trillion.

Net profit also fell 2.37 percent to Rp1.4 trillion from the previous Rp1.43 trillion.