According to the Indonesia Stock Exchange (BEI) disclosures, MYOR's sales amounted to Rp 31.48 trillion in 2023. This figure represents a 2.7% increase from 2022, which recorded sales of Rp 30.66 trillion.
Breaking it down, domestic sales for MYOR amounted to Rp 17.77 trillion by the end of 2023, slightly down from Rp 17.8 trillion in 2022. Meanwhile, MYOR's export sales reached Rp 13.71 trillion in 2023, up from Rp 12.89 trillion in 2022.
The total sales were offset by returns amounting to Rp 8.32 billion in the previous year, significantly lower than the Rp 26.59 billion recorded in 2022.
Bahana Sekuritas analyst, Christine Natasya, attributes the increase in MYOR's revenue in 2023 to the rise in average selling price (ASP).
On the other hand, MYOR's gross profit margin (GPM) increased to 26.7% in Q4 2023, up from 24.8% in Q4 2022.
Despite the increase in GPM, the company did not incur additional expenses for advertising and promotion.
As a result, MYOR's advertising expenditure (adex) in Q4 2023 decreased by 46% quarterly and 42.4% annually.
Consequently, MYOR's operating profit margin (OPM) increased by 440 basis points (bps) annually to 17.5% in Q4 2023. In 2022, MYOR's OPM was 11.5%.
"The company's decision to reduce adex due to weak consumer sentiment is a good short-term move to maintain profitability," she said in research received by Kontan on Friday (1/3).
However, MYOR may increase adex in 2024 to maintain brand loyalty amidst the launch of new products in the domestic market.
Christine projects that MYOR's adex will be 8.5% of sales in 2024. In 2023, MYOR's adex was 8.1% of sales.
This increase will be particularly evident in the biscuit, wafer, and candy segments, such as Roma Choco and Cream (for Thailand) and Roma Wafer Durian (for Indonesia).
"This will also be supported by the commencement of MYOR's new factory operations planned for the first semester of 2024," she revealed.
Christine stated that MYOR's sales in Vietnam, Thailand, and the Philippines weakened in January 2024. However, sales in China and Malaysia doubled due to the Chinese New Year festivities.
In the domestic market, MYOR's sales also experienced growth in January.
"However, the potential weakness in purchasing power will continue, especially with the increase in prices of essential food items such as rice and eggs," she noted.
Christine recommends holding MYOR with a target price of Rp 2,600 per share.
"This is based on MYOR's target price earning ratio (PER) of 19 times. This target is down from 21 times, due to weak consumer purchasing power," she explained.