Cardig sees several acquisitions in pipeline this year
Publicly-listed aviation support and food solution company PT Cardig Aero Services is planning to expand its business by acquiring companies running airport management services and industrial catering services as well as increasing equity in its subsidiaries operating in-flight food services.
Cardig Aero Services president director Nurhadijono “Diono” Nurjadin said that the company has signed memoranda of agreement with companies operating three airports.
“We are in feasibility studies. One of the airport operating companies is in Batam [Riau Islands]. As it is still in process, we cannot yet discuss the details of the deal,” Diono said during a public event on Friday.
Diono pointed out that the feasibility studies would take between three to six months to complete.
“This is part of our effort to become an integrated airport service company,” Diono said.
The company is also studying the feasibility of acquiring companies operating industrial catering services.
“We have just started the industrial catering business this year. Therefore, we may need more time to see results from the business. We will continue to develop businesses in remote areas and industrial catering as well as in-flight catering,” deputy president director Arisudono Soerono said.
Arisudono said that the company planned to establish a central kitchen to increase its market share in the industrial and manufacturing catering business.
The company currently has five subsidiaries in two business lines. In aviation service, the company owns PT Jasa Angkasa Semesta (JAS) and PT JAS Aero Engineering (JAE). Meanwhile, in food solutions, the company holds stakes in PT Citra Anugrah Sarana Boga (CASB), PT Citra Anugrah Sarana Catering (CASC) and PT Purantara Mitra Angkasa Dua (PMAD).
JAS, a ground and cargo handling company, currently serves more than 30 airlines, both domestic and international. JAE, which provides aircraft maintenance and technical ramp services, also serves about 30 airlines.
CASC serves seven mining companies in locations throughout Kalimantan. According to Arisudono, CASC has strong potential to grow as the company currently serves meals for only 7,000 people per day in a market of 1.4 million.
Cardig is also in process of increasing its stake in Purantara. “We hope to finish the acquisition this year,” Arisudono said.
Since the beginning of the year, Cardig has started to inject capital in Purantara. As of March 31, the company had injected Rp 21.28 billion (US$2.29 million) in capital. The funds came from Cardig’s initial public offering (IPO) last December.
Cardig’s subsidiary CSAB has supplied food for Purantara.
Cardig reported Rp 229.19 billion in revenues in the first quarter of the year, a 34 percent increase compared to Rp 171.13 billion in the same period last year. The company’s net profits stood at Rp 18.42 billion, a 65 percent increase from Rp 11.18 billion in the same period last year.
Cardig is aiming to reap Rp 1.15 trillion in revenues by year’s end, a 45 percent increase compared to last year’s 790.88 billion. The growing revenue is expected to boost the company’s net profits to between Rp 107 billion and Rp 110 billion this year, a 52 to 57 percent increase versus last year’s Rp 70.43 billion.
During an annual shareholders meeting on Friday, the company obtained approval to pay Rp 7.33 billion, or about 10 percent of last year’s net profits, as dividends next month.
— JP/ Raras Cahyafitri