CLEO Actively Expands, Aims Sales to Grow 30%

By : Nata Kesuma | Wednesday, March 15 2023 - 13:30 IWST

PT Sariguna Primatirta Tbk (Tanobel Group)
PT Sariguna Primatirta Tbk (Tanobel Group) - Surabaya, March 14th, 2023 - PT Sariguna Primatirta Tbk (Tanobel Group), listed bottled drinking water (AMDK) company with IDX ticker code: CLEO:IJ, continue to improve its distribution network, especially in Sumatra and the eastern part of Indonesia to support expansion activities, in addition to optimizing the existing distribution network.

Apart from developing the distribution network, CLEO is also actively building new factories, where currently the Company is building new factories in Lampung and Manado which are expected to start operating next year. This year, the Company targets sales to grow by 30%.

"The development of distribution network and the construction of a new factory are the Company's expansion steps that are interrelated and continuous. After we successfully developed a distribution network in an area, we will follow up by building a new factory in that area to reduce transportation costs," said Melisa Patricia, Deputy Main Director of PT. Sariguna Primatirta.

For this reason, the Company has prepared a capital expenditure or CAPEX of IDR 300 billion.

Majority of the CAPEX will be used for the construction of new factories and distribution networks development, in addition to those allocated for the purchase of new machines.

CLEO is optimistic that this year's performance will be better than last year, because the government has revoked the Imposition of Restrictions on Community Activities (PPKM) at the end of 2022. People activities that have increased again after the repeal of PPKM will automatically increase the community's need for drinking water. Therefore, the Company continues to add factories and distribution networks to be closer to consumers throughout Indonesia.

The majority of CLEO's product marketing services are still located on the island of Java. Therefore, every year the Company always builds new factories and expands its distribution network outside Java, such as the construction of factories in Lampung and Manado which are currently under construction.

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