ALDO's Performance is Improving, Proven Revenue Grew 10% YoY, and 18% QoQ

INDUSTRY.co.id - Jakarta, November 6, 2023 – PT Alkindo Naratama Tbk (“ALDO”), a listed company engaged in the integrated paper and chemical business, posted sales of IDR 1.2 trillion, an increase of 9.8% YoY in 9M23.

Seen from inter-quarter developments, ALDO's performance showed significant improvement, revenue in 3Q23 recorded growth of 17.6% QoQ.

"We are grateful that the hard efforts of all levels of management and employees to improve the Company's performance have shown positive results. This can be seen in ALDO's sales data in 3Q23 which has grown significantly from 2Q23 sales," said ALDO President Director, H. Sutanto.

In detail, the ALDO Paper segment has shown a strong QoQ recovery, reaching IDR 944.0 billion or growing by 14.7%. At the same time, ALDO's Chemical segment sales which include the chemical and polymer segments have shown a marked QoQ recovery, with growth of 28.9% to reach IDR 264.2 billion.

Furthermore, the recycled brown paper segment under PT Eco Paper Indonesia (EPI), has experienced the greatest growth. EPI led sales growth in ALDO primarily as the new PM2 machines entered service. EPI posted sales of IDR 628.1 billion in 9M23, a significant increase in Paper segment sales with an increase of 60.1% YoY compared to last year.

EPI's business operations include processing used paper to be recycled into brown paper which is the raw material for corrugated box products. EPI's production output is channeled to meet the conversion paper needs of various customers, including ALDO.

In the same segment, the Paper Converting business recorded sales of IDR 315.8 billion, an increase of 8.8% QoQ. Paper Converting product gross margin also showed significant improvement, reaching 21.7% in 9M23, up from 12.8% in 9M22.

This step is supported by the Company's decision to expand its Paper Converting product variants in the form of paper bags, paper boxes, paper cups, paper bowls and paper buckets targeting the FMCG, F&B and non-F&B packaging industries, which resulted in an increase in gross profit to IDR 71.2 billion in 9M23, marking a significant increase of 56.7% YoY.

These figures reflect significant operational recovery thanks to ALDO's increased productivity and efficiency.

Solar Panels

Meanwhile, to realize the Company's commitment to reducing greenhouse gases, ALDO will begin construction to install solar panels in November 2023. This solar panel construction is financed using the JCM Model Project scheme, which is a form of financing cooperation between the Governments of Japan and Indonesia.

The solar panels that will be installed at EPI's factory are planned to be able to generate 3.0333 MWp of electrical power.

"Apart from being a concrete manifestation of ALDO's contribution in efforts to reduce greenhouse gases, the installation of solar panels for power plants is also a form of the Company's support for the government's program to achieve the target of using renewable energy of 23% by 2025," concluded Sutanto.