One of the leading snack companies in Indonesia, PT Garudafood Putra Putri Jaya Tbk (GOOD), has allocated IDR 400 billion (US$ 27 million) fund for Capital expenditure (Capex) in 2023. The fund will be utilized to increase the company’s production capacity.
As of 2023, the company exports its products to over 20 countries, focusing in ASEA, Mainland China, and India. The company has a number of subsidiaries namely:
- Goldenbird Pacific Trading Pte Ltd 100%;
- PT Mulia Boga Raya Tbk 66.07%;
- PT Sinar Niaga Sejahtera 54.95%.
Ramadhan holiday 2023 drives net profits
Dian Astriana, Garudafood’s Head of Corporate Communication and Relations said that the Capex will be used mainly to increase the production capacity of the company.
“We have allocated capex of approximately IDR 400 billion in 2023, which we plan to use for expanding production capacity and warehouses,” said Astriana on April 14, 2023.
Compared to 2022, the fund allocated for the company’s Capex has increased by IDR 50 billion. The Capex is in line with the company’s target to uphold its positive performance in 2023. Although the company is yet to set a target income or profit, it remains optimistic about its performance in 2023.
“Referring to the previous growth trend over the last two years, for 2023 the company is optimistic that it is targeting growth above the industry average,” said Astriana.
As demonstrated in 2022, the company has achieved a net profit of about IDR 425.2 billion. The increase of net profit is driven by the increase of net sales of about 19.4%, which brings the company’s net sales to IDR 10.5 trillion in 2022 compared to IDR 8.8 trillion in 2021.
In 2023, the company’s sales had risen due to Ramadhan 2023 holiday, and the subsequent relaxation of Covid-19-related policies.
Astriana added that the company is aiming for an increase in sales of up to 1% during Ramadhan 2023.
“Our target for a post-Ramadan sales increase is above 10%,” concluded Astriana.