JAKARTA (TheInsiderStories) - The food-maker, PT Mayora Indah Tbk (IDX: MYOR) sees the sales to grow at least 10 percent in 2021 compared to this year’ targets of Rp24.2 trillion (US$1.72 billion), said the management last week. The targets is expecting get support from the domestic sales and export.
To support the targets, the issuer has raised Rp500 billion from bond issuances. The notes have four series with tenure of 370 days, four, five and seven years. All funds will be used to provide loans to its coffee producer unit, PT Torabika Eka Semesta.
Through the unit, Mayora has export instant coffee to Russia with worth of $40 million in 2019. According to president director, Andre Sukendra Atmadja, the company looking for a larger export of coffees and snacks to Russia. Since exporting to Russia, he said, the issuer’ business growth has grew 30 percent per year. Torabika also has expanding its market to Uzbekistan and Kyrgyzstan with Torabika Cappuccino.
Recently, Fitch Ratings rated the producer’ credit profile will continue to be commensurate with its rating amid the coronavirus pandemic. Its expect the company’ net debt to EBITDA to remain below 1.5x in 2020 despite revenue growth and margin pressure.
Mayora remains exposed to fluctuations in commodity prices. However, this is mitigated by the company’ record in maintaining stable margins, supported by its leading market position. The ‘AA’ national ratings denote expectations of a very low level of default risk relative to other issuers or obligations in the same country or monetary union.
Fitch forecasts the issuer’ 2020 sales will decline by a single digit, led by lower export sales volume and slower domestic demand for some products, which are affected by the pandemic. In the first nine months, the revenues declined by 2 percent mainly due to lower exports as its major distributors cut their stock requirements in the first quarter (1Q) of 2020.
However, this was counterbalanced by higher domestic sales due to Mayora‘ well-diversified products, strong brands and market leadership. The manufacturer’ export sales to gradually recover in 2H as the coronavirus disruptions ease.
The Group its founding in 1977 and has been circulating in more than 100 countries with a total of 250 thousand containers exported. Strategic markets include the Southeast Asian, China, India, Middle East, United States, Iraq and Palestine markets.
The first factory located in Tangerang with a target market for the Jakarta and surrounding areas. After being able to meet the Indonesian market, Mayora made an initial public offering in 1990.
US$1: 14,100
Written by Editorial Staff, Email: theinsiderstories@gmail.com
