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VAST Aims For Double-Digit Revenue Growth In 2024

The property developer of warehouse PT Vastland Indonesia Tbk (IDX: VAST) aims for double-digit revenue growth or around 30% in 2024. The company announced this at the Annual General Meeting of Shareholders held today in Jakarta. The recent expansion in the Tangerang area is expected to support the performance and revenue of the warehouse company.

VAST's Finance Director, Stanley V Gunawan, said, "We believe that the target of 30% revenue growth for this year is quite realistic, considering the development of our newly acquired assets. However, profitability will be temporarily affected due to initial costs for improvements and permits for these new assets."

For information, according to projections from Supply Chain Indonesia based on BPS data for the third quarter of 2023, the transportation and warehousing sector is estimated to contribute Rp1,245 trillion to GDP or grow by 14.99% in 2023. For 2024, this contribution is projected to reach Rp1,436 trillion or grow by 14.16%.

Throughout the first quarter of 2024, VAST managed to maintain an occupancy rate of over 90% for its built-to-suit and general warehouse, followed by an increase in the rentable area. During that period, VAST achieved significant revenue growth of 38%, reaching Rp9.0 billion, compared to the same quarter of the previous year, which was Rp6.5 billion.

VAST has several advantages in providing warehouses for its customers, including strategic and easily accessible warehouse locations. Additionally, VAST is capable of providing warehouses according to the specifications desired by its customers and completing them in a relatively short time while maintaining quality. Moreover, to support ESG, VAST is even able to provide warehouses equipped with renewable energy using solar panels.

Up until now, VAST has successfully maintained good relationships and reputation with various national and multinational customers from different industries, such as FMCG, FMCG distribution, retail, commodities, mid-mile logistics, e-commerce, and others. Some of VAST's tenants include Indomarco, Indomaret, Coca Cola, Ajinomoto, Aqua, Ninja Express, Lion Parcel, and others.