JAKARTA – PT Arwana Citramulia Tbk (ARNA) is targeting the expansion of its Plant 4D facility in Ogan Ilir, South Sumatra, in 2025 with a capital expenditure budget of IDR 300 billion.

According to Rudy Sujanto, Chief Financial Officer (CFO), the expansion is expected to increase porcelain tile production capacity by up to 6.5 million square metres per year, with product sizes ranging from 60x60, 80x80, to 70x120.

This additional capacity will lift ARNA’s total installed capacity to 75.8 million square metres annually by 2025.

The expansion will also support ARNA’s production volume target of 75.2 million square metres this year, up 18% year-on-year (yoy) from the realised 63.5 million square metres in 2024.

ARNA’s overall plant utilisation rate reached 92% in 2024. With the plant expansion and higher output targets, utilisation is expected to climb to 99.2% in 2025.

Plant 4D has been under construction since early 2024, with machinery installation scheduled for June. According to Rudy, the facility is projected to be operational by October 2025.

“This will also contribute to net sales growth this year, which we’ve set above IDR 3 trillion,” Rudy said during ARNA’s Public Exposé in Banten on Tuesday (8/4).

During the same event, Rudy revealed that ARNA’s revenue target for 2025 is IDR 3.1 trillion, a 19% jump from the IDR 2.6 trillion recorded in 2024.

This optimism is backed by ARNA’s aim to increase its average selling price (ASP) by 7% in 2025, driven by a focus on mid-to-premium ceramic products with higher margins, such as Digi UNO and ARNA Solitaire.

However, rising cost of goods sold due to higher gas prices (HGBT) and rupiah depreciation—projected to increase by up to 10%—could weigh on profitability. As a result, gross margin is expected to decline from 34.4% to 32%.

ARNA ultimately targets a 10% increase in net profit for 2025 to approximately IDR 470 billion, though net profit margin is forecast to decline from 16.2% to around 15.5%. (ZH)