Dec 23, 2010

Pan Brothers eyes US$310 mio revenue

After conducting a rights issue and other corporate actions, PT Pan Brothers Tbk targets its revenue to grow double to US$310 million in 2011.
Vice Chief Executive Officer of Pan Brothers Anne Patricia Sutanto explained the company is optimistic its revenue in this year to reach US$155 million, or equal to the revenue in 2009.
"Our revenue in 2010 expected to reach US$155 million. Whereas, the current position of comapany’s has reached US$150 million. It means the revenue target is the same as in 2009. For next year’s target, we expect to post a double increase in the revenue compared to last year’s period," she said yesterday.
Related to the right issue funds, Anne said that the company will use the funds for investment purposes such as to extend production capacity and to increase the company’s investment up to 33.33% in its subsidiary, Ekabrothers.
"We will add 4,800 new machines. About 3,000 machines will be put in Pancaprima and 1,800 machines in Pan Brothers. The current total machines in Pancaprima and Pan Brother reach 8,400 machines. And it will be increased to 14,200 machines."
She also said the company and its subsidiaries consolidated capital expenditure (capex) in 2011 set at Rp340 billion.
"The capital expenditures were taken from the proceeds of the previous rights issue," he added.
The company plans to conduct the second stage of rights issue in early 2011. Pan Brothers (PBRX-coded stock) will offer common shares as much as 445 million shares at Rp1,350 share. As calculated, with this offering price, the company may obtain Rp601 billion. In addition, the company will also publish 148 million of Series I Warrants at Rp1,600 per share.
Furthermore, the company also plans to conduct a stock split after the rights issue. "We can not ensure the time because the company still focuses to build investments. Firstly, we would like to make sure the performance of the company is in line with our commitment to investors," he added.

Disclosure: No position at the stock mentioned above.  

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