Dear Shareholders and Stakeholders,
Praise the Lord for His blessings that the Company achieved good result in the year 2021 even though the economic recovery after Covid-19 pandemic still continue to date.
Implementation of Community Activities Restrictions Enforcement (CARE) and Vaccination by the Indonesian government added with incentives and economic stimulus had successfully brought Indonesian economic growth to 3.96% in 2021 which was a big increase from a negative growth of 2.07% in 2020.Difficult time and challenges during Covid-19 pandemic had increased people awareness toward cleanliness and hygiene also had resulted behavioural changes. All these gave positive effects to the Company who dealt with cleaning products. The Company was one of those who not only survive but also grew.With sincere gratitude we humbly report that in 2021 the Company achieved a good financial result with consolidated revenue of US$371.08 million an increase of 14.19% from 2020 which was US$324.96 million. The Company nett profit in 2021 was US$58.05 million an increase of 112.69% from 2020 which was US$27.29 million.Such achievement pushed us to maintain positive working attitude, to be vigilant and to continue pursuing sustainable growth.The Company committed to sustainable growth which is necessary to meet present and future demand. We are aware and obliged to align the operation with Environment, Social and Economic aspects which is the key to a successful business growth.Strategy and Policy of Strategy
The increase of awareness for clean and hygienic lifestyle resulted an increase of demand for the Company’s product.
Therefore, the Company will expand its production capacity by 120,000 MT per year. This capacity expansion is expected to start in 2022 and to be completed in 2024.In the meantime, the Company will maximize its production output and maintain stable distribution of product to ensure raw material availability for continuous production of loyal customers, both domestic and overseas. The Company will also continue explore new market.To ensure the Company ran smoothly also employees’ health and safety were well protected, the Company set regulations based on government Covid-19 health protocols and enforced them to all employees at the plant and at the office. The Company has also implemented a Covid-19 vaccination program for employees and their families, so that the Company’s activities can continue to run smoothly and effectively.The Company always carry out and professionally managed sustainable and environmentally friendly operations in accordance with prevailing laws and regulations.Directors’ role in formulating Strategy and Policy
The Company directors had important roles in formulating the
Company Strategy and Policy to achieve The Company’s goal
and to present the best result to the stakeholders. The directors
established strategy and policy in line with their individual
experience and expertise for short, medium and long term which
would be implemented by the Company.The strategy and policy had been evaluated and discussed in
depth. The Company directors were assisted by the Company
management in analysing risks for finance, nonfinance and
business prospects. The end results were delivered to the
Company Commissioners for considerations and feedback.The directors, assisted by the management team, Internal
Audit unit, and the Corporate Secretary, continuously monitor
the implementation of the approved Company strategy and
policy and when made adjustments and revisions when needed
adapting to the changes of economic situation and condition.Comparison between result and target
In 2021 the crude oil price was in up-trend. The crude oil price increase affects the raw material costs and the Company product selling price.The selling price increase and coupled with the high demand for the Company product, the Company achieved consolidated revenue of USD371.08 million which exceeds the 2021 target of USD323.11 million. The condition also gave the Company higher margin and gross profit of USD72.72 million exceeding the 2021 target of USD37.68 million.
Obstacles
Covid-19 and quarantines created shortage in ship-tankers that carries raw materials and container ships that carries Company finish product which resulted delays and increase in freight cost.Covid-19 health protocols restricted direct meetings with contractors and related parties which was replaced by virtual meetings. In addition to that border closures and isolation quarantines for visitors affect the project progress. Therefore, the expansion project experienced delay from the original plan.Overview of Business Prospects
In 2022 it is expected that global and Indonesian economic condition will improve further. The Indonesian economic growth in 2022 is predicted by Indonesia Central Bank (BI) to be 4.7% to 5.5%. The 2022 prediction is based on 2021 economic growth indicators which increased.Indonesia detergent consumption per capita is still relatively low compared to those in developed countries. With good economic growth, population size and population growth will give good prospect to the detergent and cleaning industries in Indonesia. The increase of people awareness for clean and hygienic way of life also increases the detergent and other cleaning products. Therefore, we are confident and optimistic for the Company future.In 2022 the Company will start the expansion project to increase the production capacity by 120,000MT per year. This capacity increase is expected to strengthen the Company position domestically and internationally to provide sustainable on time supply to the customers.Governance implementation
The Company always value the importance of sustainable growth and concern for Environment, Social and Governance (ESG) where ESG is a main pillar toward achieving sustainable growth.The Company always believes that Good Corporate Governance (GCG) is an important aspect in managing the Company to protect the interest of stakeholders also to enhance the trusts and values of the shareholders toward sustainable business growth.Therefore, the Company continues to ensure that the basic principles of the GCG, which consists of Transparancy, Accountability, Responsibility, Independence and Fairness - are applied to all aspects of the business operations and at all levels of management and implemented in accordance with prevailing laws and regulations. The Company always ensures that the Company’s organs such as the General Shareholders Meeting (GSM), the Board of Commissioners, the Directors as well as other GCG supporting organs such as the Audit Committee, the Internal Audit Unit and the Corporate Secretary function properly so that the Company’s GCS can be fully enforced.In 2021 the Company has fullfilled all obligations on reporting and disclosure of information to all stakeholders punctually in accordance with prevailing laws and regulations.On 24 June 2021, the Company’s Directors held Annual GSM for the 2020 financial year and also Extraordinary GSM to amend the Company constitution specifically POJK 14/2019, POJK 15/2020 dan POJK 16/2020. In the Annual GSM the Company’s Shareholders received and ratified the 2020 Annual Report which includes the Company’s Activity Report, the Board of Commissioners’ Supervisory Report, and the Company’s Financial Statements for the 2020 financial year.In the Annual General Shareholders Meeting the Company’s Shareholders have also decided to distribute cash dividends on 2020 net income, amounting to USD6.94 million, of which USD2.98million has been distributed as interm cash dividend on 29 Dec 2021 and the balance USD3.96 million as final cash dividend which will be distributed on 16 July 2021.The GSM has reappointed the Company Commissioners and Directors for the period 2021-2026 and there is no change of Commissioners and Directors composition from previous one.As part of the Company commitment to be active in establishing sustainable environment, the Company has created special task force who specifically deal with health, safety and environment (HSE). The Company will continually improve the HSE by providing trainings. The Company was awarded ISO 14001:2015 Certificate by SGS System & Services Certification since 2004 as prove of the Company active involvement on environment.The Company maintains good working relationships and communication with the employees, facilitates a Union without discrimination of ethnic, religions, race, and gender. The Company also carry out an equal and fair performance evaluation and fulfilling the normative rights of employees as stipulated in the Manpower Law. The Company also maintains good Occupational Health and Safety (K3) for the employees and creates a comfortable working environment, beautiful and environmentally friendly.The Company’s commitment to provide quality products for its customers, the Company’s credibility to maintain the quality of its products has been recognized through the ISO 9001:2015 international quality standard certification which has been obtained by the Company since 2003.
The Company actively participate in Corporate Social Responsibility within the company and also the surrounding community. During Covid-19 prevention effort, the Company enforced strict rules in line with government health protocols and facilitated Covid-19 vaccination programme for the employees and family also to the surrounding community.
As a form of the Company’s concern for the surrounding community, The Company works together with Sultan Ageng Tirtayasa University (UNITIRTA) located in Serang, Banten to grand Diploma I (Chemical) scholarships for High School graduates.The Company also provides work to the surrounding community (Pemuda Karang Taruna) as part of human resources programme and participate in social activities in the surrounding environment.
Appreciation
Finally, we would like to appreciate all employees who have worked with full dedication so that the Company could overcame 2021 challenges with positive achievements. We are also very thankful for all our customers, suppliers, creditors and business partners for the supports, cooperations and trusts provided to us. We will continue to put our best efforts to strengthen our cooperation based on mutually beneficial partnership.
We also expressed our respects and gratitude to the Board of Commissioners for their guidance and to the Shareholders for their trusts. We are optimistic that the Company will continue to advance and achieve optimum results.
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Directors Report
Praise the Lord for His blessings that the Company achieved good result in the year 2021 even though the economic recovery after Covid-19 pandemic still continue to date. |
Directors Report