2019, Cattur Sentosa Adiprana (CSAP) will open 5 new stores Mitra10

Distribution, building, chemical and retailers issuers, PT Catur Sentosa Adiprana Tbk. (CSAP) plans to open five new Mitra10 outlets by 2019.

Idrus H. Widjajakusuma, Corporate Secretary of Catur Sentosa Adiprana, assessed that domestic economic growth next year will still be the same as this year. Meanwhile, CSAP still believes in the real sector, especially retail building materials.

“Next year’s store opening plan is 5 stores, in Java and Sulawesi,” he said on Wednesday (12/19/2018).

Throughout this year, CSAP-coded issuers have opened three new outlets located in Bitung, Cikupa and Banten. He said, the expansion of the opening of new outlets is in line with the needs of home renovations that are still in demand. In addition, Idrus also considered that the house backlog of up to 11.4 million was still an opportunity for distribution companies and building materials.

This year, CSAP allocated capital expenditure worth IDR 400 billion for the needs of the distribution and retail division. Meanwhile, the company’s 80% capital expenditure comes from bank loans.

As of September 2018, the sales value of issuers coded as CSAP shares was IDR 7.58 trillion, up 12.46% from IDR 6.74 trillion in the same period the previous year. CSAP sales as of September 2018 consisted of the distribution and retail segments of Rp5.47 trillion and Rp2.21 trillion respectively, growing 9.18% and 22.09% year on year respectively.

The sales growth of the retail segment is higher, making the company aggressively make additional outlets. However, the company continues to strengthen its distribution business.

Idrus said, the strategy to increase revenue from distribution is by increasing the portion of private branding, adding areas and adding new principal products. He is also optimistic, until the end of 2018, the company will pocket sales and net profit of Rp11 trillion and Rp100 billion respectively.

Recently, Thai investors, SCG Retail Holding Company Limited entered into a 29% stake in the company. According to him, the entry of SCG will strengthen the company’s business and the new investor will conduct synergies from the side of material products and supply chain.

Related to the strengthening of the dollar, CSAP has not planned to raise prices. On the previous occasion, Idrus said, the company prefers to sacrifice margins, rather than raising prices. The gross profit margin until September reached 14.56% with a net profit margin of only 0.7%.

According to him, strengthening the exchange rate does not have a very significant impact on the company’s performance. Even so, the company considers, the dollar has begun to stabilize, because that is what most business people want is exchange rate stability.

Meanwhile, the imported components in material distribution and Mitra10 each reached 16% and 20%. For information, while the location of Mitra10 stores will be concentrated in Greater Jakarta, Central Java, East Java and Sulawesi.

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