Avian Brands Q3 2025 slides: 14.5% revenue growth driven by product innovation

Introduction & Market Context

Avian Brands PT Tbk (AVIA) reported strong financial results for the third quarter of 2025, with consolidated sales reaching IDR 2,043 billion (US$125 million), representing a 14.5% increase compared to the same period last year. The company’s shares responded positively to the results, closing at IDR 412 on October 31, 2025, up 0.49% following the presentation.

The paint manufacturer continued to demonstrate resilience in what it described as a "soft economic environment," with growth driven by strategic product launches and distribution network expansion. The company’s focus on gaining market share while maintaining healthy margins has positioned it well in Indonesia’s competitive paint industry.

As shown in the following snapshot of key performance indicators:

Quarterly Performance Highlights

Avian Brands delivered strong growth across all key financial metrics in Q3 2025. Net profit increased by 15.5% year-over-year to IDR 407 billion, with a net profit margin of 19.9%. EBITDA grew by 16.9% to IDR 500 billion, resulting in an EBITDA margin of 24.4%.

The company’s architectural solutions segment, which comprises 78% of total sales, performed particularly well with 14.8% growth in revenue and an improved gross margin of 50.2% compared to 48.8% in the same period last year. Meanwhile, the trading goods segment saw 13.7% revenue growth but experienced margin pressure, with gross margins declining from 26.7% to 18.4%.

The detailed financial performance highlights demonstrate the company’s ability to grow both revenue and profitability:

Avian Brands’ customer base continued to expand, reaching over 58,000 retail outlets nationwide. The company maintained its strong focus on traditional retail outlets, which accounted for 92.3% of sales in the first nine months of 2025, slightly up from 92.1% in the same period last year.

The breakdown of gross profit by segment shows the contrasting performance between architectural solutions and trading goods:

Despite some pressure on overall gross margins, the company maintained disciplined cost management, as evidenced by the relatively stable operating expenses as a percentage of sales:

Strategic Initiatives

Product Innovation

During Q3 2025, Avian Brands launched several new products across its key segments, strategically designed to complete its product lines across all price points. The company introduced new offerings in wood and metal coatings, waterproofing solutions, and instant cement products.

As illustrated in the product launch overview:

Distribution Network Expansion

Avian Brands continued to strengthen its distribution infrastructure, opening four wholly-owned distribution centers during the quarter. The company now operates 182 distribution centers across Indonesia, with 129 wholly-owned distribution centers, 15 wholly-owned mini distribution centers, and 38 third-party distribution centers.

This extensive network enables the company to make approximately 16,000 daily deliveries and achieve a 91% fulfillment rate for 1-day delivery services to retail outlets located within a 50 km radius of a wholly-owned distribution center.

The following map illustrates the company’s nationwide distribution coverage:

Retail Partnerships

In September 2025, Avian Brands officially launched a partnership with AZKO, a retail chain with 252 stores nationwide. As part of this initiative, the company opened two in-store booths in Jakarta where consumers can explore solutions for their home painting needs. This partnership represents an important step in Avian Brands’ strategy to enhance its retail presence and consumer engagement.

Share Buyback Program

Avian Brands continued to execute its second share buyback program, which was approved by shareholders in April 2025. As of September 2025, the company had acquired 913 million shares (64% of the maximum authorized) at a total value of IDR 398 billion (40% of the allocated fund).

The progress of the share buyback program is summarized in the following chart:

Forward-Looking Statements

For the full year 2025, Avian Brands has provided guidance of 6-10% value growth and 4-8% volume growth. The company outlined several strategic priorities for the remainder of the year, including:

1. Introducing new products and accelerating the deployment of tinting machines

2. Expanding distribution centers and elevating service quality

3. Strengthening marketing activities and loyalty programs

4. Optimizing internal operations and advancing ESG initiatives

5. Continuing the execution of the second share buyback program

The company’s cash flow generation capabilities remain strong, with free cash flow of IDR 597 billion in the first nine months of 2025, representing 10.1% of total sales. This provides Avian Brands with the financial flexibility to fund its growth initiatives and shareholder returns.

As illustrated in the following chart of the company’s cash flow metrics:

Avian Brands’ continued focus on product innovation, distribution expansion, and strategic partnerships positions it well for sustained growth in Indonesia’s paint market, which is expected to grow faster than the country’s GDP according to management. The company’s ability to maintain strong margins while gaining market share demonstrates the effectiveness of its business strategy in a competitive environment.

Full presentation:

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