Nov 22, 2010

Berlina revenue to rise 12.17% in 2010

PT Pemeringkat Efek Indonesia (Pefindo) estimates that PT Berlina Tbk (BRNA) revenue will rise 12.17% or reach Rp602.5 billion in 2010 and 11.76% compound annual growth rate from 2009 – 2014 period.
In a company report currently published by Pefindo, the rise will be underpinned by expansion of production capacity, improved Berlina sales and net income in 3Q 2010 by 9.8% and 109% Yoy respectively.
Berlina is a plastic packaging manufacturing, which produce blow and injection moulds, plastic containers, plastic components, tooth brushes, blown film, laminated tube and plastic extrusion tube.
Currently, Berlina total production capacity for plastic package products has reached 16,500 metric ton (mt) per year, and 650 million tube per year for laminated and plastic extrusion tube.
The company sells all of its products to third parties, mostly to PT Unilever Tbk (UNVR) and Unilever China – companies engaged in producing fast moving consumer goods (FMCG), which accounted for around 68% of BRNA’s sales as of September 30th, 2010.
As of September 30th, 2010, Berlina majority shareholder is PT Dwi Satrya Utama (51.42%), a national investment company.
Performance of Berlina as one of the plastic packaging producer, is very much influenced by other industry, especially fast moving consumer goods (FMCG) industry, particularly toiletries industry, since around 68% of Berlina sales is in formed of toiletries products for one of the biggest toiletries products in Indonesia, which is UNVR.
FMCG industry performance itself, is influenced by the increased of Indonesia’s population and people purchasing power.
As Indonesia’s population rose to 237.6 million people in 2010, followed by an increase of gross domestic product (GDP) by 6.2% YoY in 1H10, which indicate as an improvement of Indonesia’s people purchasing power, caused the FMCG industry increased by 8% YoY in 1Q10, since Indonesian people now has more confidence to spend more on FMCG products.
From January – August 2010, Berlina has spent around Rp112 billion of Rp140 billion of their capital expenditure budget.
Around 47% of its total capital expenditure will be used to finance new plastic packaging machines, and the rest will be used to built factory, engine maintenance and enhance technology system.

Disclosure: No position at the stock mentioned above.  

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