Per September 2017, Buyung Poetra Sembada's Sales Grow 10%

By : Abraham Sihombing And Aldo Bella Putra | Thursday, November 02 2017 - 22:00 IWST

PT Buyung Poetra Sembada (Foto Abraham Sihombing)

INDUSTRY.co.id - Jakarta - PT Buyung Poetra Sembada Tbk (HOKI), a distributor of rice branded Koki Hat, posted sales of Rp900 billion as of September 2017, growing 10 percent compared to the same period in 2016 worth Rp816 billion.

The sales growth was able to boost net profit during the period by 24% to Rp36 billion. As of September 2016, HOKI posted a net profit of Rp29 billion.

"Sales growth is driven by higher demand, both in traditional markets and modern retail markets, as of September 2017 compared to the same period in 2016," said Dion Surijata, Investor Relations of HOKI, in Jakarta, Thursday (02/11/2017).

Dion points out; demand for rice from traditional markets is higher than in the modern retail market. The reason is the most of the demand from traditional markets compared in the modern retail market.

"The high demand makes us able to overcome the obstacles of the famine season, the increase in rice prices and the existence of the highest retail price policy so that the performance of HOKI until the end of September 2017 is still quite good," said Dion.

Dion explained that HOKI management has not changed the target market yet, but the target market change can be done according to the demand of rice packaging only.

Approximately 57% of HOKI's sales came from sales of packaged rice in traditional markets and the remaining 43% was contributed by sales of packaging rice in the modern retail market. To increase market penetration, HOKI also sells rice to hotels and restaurants.

However, Dion did not mention the amount of rice sales to hotels and restaurants that could support HOKI's sales performance.

To be sure, according to Dion, the consolidated sales value recorded by HOKI as of September 2017 includes the sale of broken rice, rice bran and bran.

In addition, the company also penetrated into rice sales online. Nevertheless, Dion admitted, online rice sales are not too developed compared with the way of regular sales.

"Although the sales contribution is still small, but HOKI management will continue to continue selling rice online," said Dion.

Dion predicts HOKI will book sales up to Rp 1 trillion until the end of 2017. This prediction is not much different from the company's sales realization in 2016. (Abraham Sihombing)