CLEO - PT. Sariguna Primatirta Tbk

Rp 1.240

-10 (-1,00%)

JAKARTA – Bottled mineral water manufacturer of Cleo brand, PT Sariguna Primatirta Tbk (CLEO), plans to add 4 new factories this year to increase production capacity as market demand skyrockets.

Until now, CLEO is known as the bottled water manufacturer with the highest number of factories in Indonesia, reaching 31 factories as of April 2024. However, most of the locations are still concentrated in Java Island with 19 units.

According to Annual Public Expose of CLEO today (30/5), the company is planning the establishment of 4 new factories in 2024, including one unit in Palembang, South Sumatra, which awaits its commercial operational date.

Three other new factories will also be located outside Java, with one unit each in di Palu, Central Sulawesi; Pontianak, West Kalimantan; and Pekanbaru, Riau.

“The construction of Palu, Pontianak, and Pekanbaru factories will begin all at once in Q2, and are projected to operate later this year, or no later than 2025,” claimed the management of CLEO.

It is also mentioned that CLEO has budgeted capital expenditure of up to IDR 450 billion this year to build three factories. “Each factory will have a capacity of 250 million litre per year, thus bringing the total production capacity to 1 billion litre per year,” said the directors of CLEO further.

In addition, the board of directors claimed that this capex will only take up internal cash of the company, considering solid cash flow from operational activities. “However, if needed, we may apply for third-party loan,” they added.

CLEO’s factory expansion is considered after observing the ever-increasing demand, as reflected in sales that skyrocketed by up to 25% yoy to IDR 2.1 trillion at the end of 2023.

Even in Q1 2024, sales kept its uptrend, growing double digit of up to 37.6% yoy to IDR 626.5 billion. “Sales shifted significantly, quite strong, thus forcing us to prepare to meet currently existing demand,” the management concluded. (ZH)