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Paper and chemicals issuer, PT Alkindo Naratama Tbk (ALDO) stated that capex absorption in the first quarter of 2023 has realized IDR 20 billion. President Director of ALDO, Herwanto Sutanto explained that this year he has prepared a total capex of IDR 51.5 billion, most of which will be allocated for maintenance and purchase of new machines. "Most of the capex has been disbursed for the multi-year program. This year, the second paper machine at the Eco Paper subsidiary has been operating. Furthermore, there will also be new machines at Alkindo and ALFA," explained Herwanto, recently.

Furthermore, Herwanto explained that during Ramadan and Idul Fitri 2023, he noted that packaging requests tended to increase. He said, apart from an increase in the FMCG industry for food and non-food packaging, MSMEs also helped increase sales, especially businesses that offer special Eid products such as cakes, clothes and gifts.

However, his party did not reveal the growth that occurred in that period. Meanwhile, in the first quarter of 2023 ALDO recorded a slight decrease in revenue of IDR 390.3 billion or 4.2% on an annual basis or Year on Year (YoY).

"The cause of the decrease in revenue was because there was a decrease in the price of recycled paper raw materials (OCC) which resulted in a decrease in the price of brown paper or brown paper. In addition, this was due to the costs borne by the Company for the construction of the second machine, where the effects of sales could only be felt. at the end of the first quarter of 2023," he explained.

In the first quarter of 2023, contribution came from the sales of the paper segment which recorded a sales increase of 30.7% YoY in the first quarter of 2023. Meanwhile, the Convertible Paper segment, as the second largest contributor, recorded a slight decrease of 3.0% YoY.

Chemical Cement recorded a decline in sales of 25.6% YoY due to the weakening of the textile & garment sector. ALDO recorded a slight increase in cost of goods sold by 2.1% YoY, thereby reducing gross profit by 32.2% YoY.

ALDO recorded a net profit attributable to the company of IDR 1.3 billion in the first quarter of 2023.

Hermawan said, until the end of 2023, ALDO targets sales to grow by around 59%, while net profit grows by around 77%. The new machines installed in February 2023 and commercial production in March 2023 will be the main drivers of ALDO's future growth.

"This machine will triple sales volume and the full effect will only begin to be felt at the end of the first quarter of 2023 and so on. By adding capacity, this will absorb even greater demand for packaging," he explained.