Invest at PT Primaplast Indonesia Tbk

PT Primaplast Indonesia Tbk at glance

PT Primaplast Indonesia Tbk is the key to environmentally friendly disposable straw solutions.

PT Primaplast Indonesia Tbk is the right solution for providing disposable and environmentally friendly straws ~ eco-straws with local and global sales reach

Our products offer consumers convenience, food safety and reduced household waste. We divide business segments into several targets.

Horeka Industry (Hotel, Restaurant & Cafe).
Disposable Packaging For Drinks & Food.
Daily Household Items.

For Japanese, European, American & Australian markets.

PT Primaplast Indonesia Tbk is located in Serang, Banten, Indonesia and is listed on the stock exchange (SDOT, JSX Indonesia).

Why invest in PT Primaplast Indonesia Tbk

PT Primaplast Indonesia Tbk is a market leader and innovates with technology as a straw manufacturer, which creates value through:

Attractive sustainable core business portfolio to achieve strong market growth.
Improved operational performance to ensure competitiveness in the short and long term.
Strategic capabilities to win now and in the future.

Our long-term ambition is to achieve 5-6% annual organic growth

All together about 70% of our business is in the fast-growing emerging markets, and in North America
We have major brand owners with high growth agendas as customers: Large global customers account for approx. 30% of our net sales
We have resources to follow our customers and expand geographically
We have increased our focus on innovations and invest in expanding our product offering

We have proven financial and operational track record and resources to continue growing

Net sales growth from EUR 2,236 million in 2014 to EUR 4,169 million in 2023
Adjusted EBIT growth from EUR 175 million in 2014 to EUR 393 million in 2023 – EBIT margin 7.8% in 2014, 9.4% in 2023
We have a strong financial position, we aim to keep our Net debt / Adjusted EBITDA in the ambition level of 2-3 (2.2x at the end of December 2023)
Stable and growing dividend: our ambition is a payout ratio of 40–50% of EPS, 15 consecutive years of dividend growth (based on BoD proposal for 2023)

Sustainable investment

Increasing investment value through sustainability

At PT Primaplast Indonesia Tbk, sustainability is an integral part of our strategy and daily work. As a global solution provider in providing environmentally friendly disposable straws, PT Primaplast Indonesia Tbk is fully committed to sustainability as one of the strongest transformative opportunities for our stakeholders and customers. We believe that PT Primaplast Indonesia Tbk can be successful for the long term by creating value for shareholders and society.

Straw products create value by ensuring hygiene and food safety for consumers around the world. Additionally, with the increasing focus on the planet’s future, straw products also play an important role in reducing household waste, which remains by far the largest environmental impact of the food system on climate change. In addition, thanks to today’s digital breakthroughs, straw products also offer solutions including product traceability and efficient circularity. Our customers, consumers, communities and planet need sustainable solutions more than ever. We remain committed to our ambition to be the world’s first choice in eco-friendly straw solutions.

PT Primaplast Indonesia Tbk takes a leading role as an environmentally friendly straw industry in overcoming global challenges related to circularity and climate change. Realizing that the use of straws has an important role, PT Primaplast Indonesia Tbk is raising standards in its activities and setting high sustainability ambitions. We want to become a world-class provider of environmentally friendly straw products. And focuses on the areas of sustainability: environmental, social and governance.

The right choice for disposable straw solutions.

Our ambition is to be the first choice in sustainable packaging solutions by 2030. To achieve this ambition, we strive to do business in a financially, environmentally, and socially responsible way. In order to achieve our ambition, we launched our new 2030 Strategy in 2020, with sustainability as a key driver. We embed sustainability in everything we do. We aim to minimize the negative impacts of our operations and products on the environment while maximizing the positive impacts on our stakeholders, consumers and society.

As a company, Huhtamaki continuously works to improve our social, environmental and economic impact. Our journey towards our 2030 ambitions has been recognized externally in several ESG indices. In 2022, we received an MSCI ESG Rating of A on a scale of AAA-CCC. To address the challenges of climate change, we have committed to set science-based targets through the Science Based Targets initiative. We have been awarded the Gold Medal by EcoVadis for our performance in sustainability. We are focused on achieving carbon neutral production and designing all our products to be recyclable, compostable or reusable by 2030.

Our strategy aims to create long-term value that we support through regular and open communication with the investment community and other stakeholders.

Profitable investment

Sustainable profitable growth

Huhtamaki’s ambition is to be the first choice in sustainable packaging solutions. With our strategy focused on four pillars we aim to deliver sustainable profitable growth. As a publicly listed company, Huhtamaki is committed to earning profit for its shareholders. Huhtamaki has several financial long-term ambitions. The most important of these are our growth ambition of 5-6% annual comparable growth, 10-12% adjusted EBIT margin and adjusted return on investment (ROI) of 13-15%. In addition, our ambition is to have net debt/adjusted EBITDA of 2–3 and pay 40–50% of our profit as dividend.

Huhtamaki’s economic responsibility in 2023

In 2023, the economic value generated by the Group was EUR 1,539 million (EUR 1,511 million) of which EUR 1,107 million (EUR 1,038 million) was distributed to stakeholders and EUR 432 million (EUR 473 million) was retained in the Group for operational development and further growth. The Group achieved -2% organic and no acquisitive growth. Adjusted EBIT margin, excluding items affecting comparability (IAC) of EUR -11.7 million, was 9.4%. Dividends paid to shareholders correspond to a 40% payout ratio (of 2022 profits).

Huhtamaki as a tax payer

Huhtamaki wants to make a positive contribution to the world and is committed to paying all taxes and complying with other related obligations according to local laws and regulations. Moreover, the Huhtamaki values, the requirements of our Code of Conduct and the Code of Conduct for Huhtamaki Suppliers transcend national boundaries and complement the framework for our business operations. Huhtamaki’s Public Tax Strategy is available on our website.

One of our operating principles is to ensure the predictability and optimization of taxation. In addition to ensuring that taxes are paid correctly in all locations, we also seek to ensure that we do not pay excess taxes and that we capitalize on the tax deductions enabled by local tax regulations. The Group’s tax expenses in 2023 increased to 87 EUR million (EUR 67 million) and paid taxes amounted to EUR 84 million (EUR 71 million). The corresponding tax rate was 28% (19%).

In intercompany business transactions, we comply with OECD guidelines on transfer pricing. Intersegment net sales were EUR 10 million (EUR 21 million), corresponding to 0.2% of the Group’s net sales. Our business decisions are made with our strategy, financial ambitions, sustainability and commercial environment in mind, all while striving to better serve our customers. While taxation is one factor to be considered, it is not a dominant factor.