Adding Factory Capacity, Keramika Indonesia (KIAS) Aims for 10% Revenue Growth
6/11/2022
PT Keramika Indonesia Assosiasi Tbk (KIAS) has budgeted a capital expenditure (capex) of Rp 40 billion this year. This fund will be allocated to increase the capacity of one wall ceramic factory line.
KIAS Director of Operations, Gunarso explained that up to the first quarter of 2022, Rp 10 billion has been absorbed from the total capex allocation of Rp 40 billion.
Meanwhile, in terms of performance, until the first quarter of 2022, KIAS posted an increase in revenue of 7% year on year (yoy) to Rp 154 billion compared to the first quarter of 2021 which was Rp 143 billion. "The increase in the company's revenue comes from the increase in sales volume," said Gunarso in the KIAS public expose, Friday (10/06/2022).
The increase in revenue was accompanied by an increase in cost of revenue by 10% yoy or Rp. 147 billion, while in the same period in 2021 it was only Rp. 143 billion.
He said that the increase came from the increase in sales volume and the price of raw materials. While operating expenses in the first quarter of 2022 recorded a decrease of 11%, the decrease came from the post of employee expenses. Other expenses decreased by 305% which came from finance expenses.
"Overall, net profit in the first quarter of 2022 decreased by -271% compared to the first quarter of 2021," said Gunarso.
As of March 31, 2022, the company's total assets amounted to Rp 1.01 trillion, with total current assets of Rp 285 billion, an 8% increase. According to Gunarso, the increase mainly came from the increase in trade receivables to related parties.
Meanwhile, short-term liabilities increased by 13% from trade payables to third parties for purchases of raw materials and equity in the first quarter of 2022, decreased by 0.1% due to losses in the first quarter of 2022.
In addition, the company targets revenue growth to increase by 10% in 2022. This increase is driven by the addition of production capacity. The company said that in 2021 the production capacity was recorded at 12 million / m2 per year. "We project that revenue will increase this year," he said.
On the other hand, Gunarso explained that in 2022 the company experienced challenges and obstacles stemming from the impact of the Covid-19 pandemic, the plan to implement the Zero Over Dimension Over Loading (ODOL) policy and the flood of imported ceramics, especially from China and India.
"We carry out cost efficiency from all lines, starting from production preparation to sorting, we sort from all sides, starting from raw materials and using competitive spare parts," he concluded. (C01)
