Saturday, 31 October 2020 | 17:49 WIB

Semen Baturaja Allots 20.48% of 2019 Net Profit as Dividend

Semen Baturaja Allots 20.48% of 2019 Net Profit as Dividend (semenbaturaja)

JAKARTA, NETRALNEWS.COM - PT Semen Baturaja (Persero) Tbk (IDX:SMBR), a state-owned company in South Sumatra engaged in the cement industry, has just held an Annual General Meeting of Shareholders (AGMS) for the 2019 Financial Year at the Sari Pacific Hotel, Jakarta, on August 5, 2020. The AGMS is chaired by the company's Independent Commissioner Darusman Mawardi.

At the AGMS, it was agreed that Semen Baturaja would use its 2019 net profit of IDR30.072 billion to source its dividend payout. The company would distribute dividend payout ratio of 20.48 percent with total cash dividend value of IDR 6.158 billion. The remaining IDR23.913 billion was designated as other reserves.

The AGMS also approved changes to the company's management. The changes in the composition of the company's management are based on the needs to face challenges faced by SOEs in the future.

Changes in the composition of the company's management are as follows:

1. Dede Parasade who previously served as Marketing Director, is replaced by Mukhamad Saifudin

2. Harjanto, who previously served as President Commissioner, is replaced by Franky Sibarani

3. Dewi Yustisiana, who previously served as Independent Commissioner, is replaced by Endang Tirtana

4. Dismissal of Kiki Rizki Yoctavian as Commissioner due to the expiration of the term of office

Thus, the new composition of the Semen Baturaja's management based on the resolutions of the AGMS for the 2019 Financial Year are as follows:

Chief Commissioner: Franky Sibarani

Commissioner: Oke Nurwan

Independent Commissioner: Darusman Mawardi

Independent Commissioner: Endang Tirtana

President Director: Jobi Triananda Hasjim

Production & Development Director: Daconi

Finance Director: M. Jamil

General Director & HR: Amrullah

Marketing Director: Mukhamad Saifudin

In addition to approving the dividend distribution value and changes in the composition of the company's management, the AGMS also approved reports on the condition and progress of Semen Baturaja during the 2019 financial year.

In a report submitted by President Director of SMBR Jobi Triananda Hasjim, the company reported relatively stable sales performance amid a decline in national cement demand throughout 2019.

The company managed to obtain sales volume of 2,119,772 tons, almost the same as in 2018 amidst the condition of the cement industry which was still in oversupply, and the slowing growth of cement demand in Southern Sumatra.

"The sales performance of SMBR is still better than the total consumption (demand) of cement in South Sumatra, which is based on data from the Indonesian Cement Association (ASI), which fell by 9.3% throughout 2019, which is the main market for SMBR," said Jobi.

Supported by effective marketing strategy, throughout 2019, SMBR was also able to increase its market share in the Southern Sumatra area by 2% to  become 35% from the previous year. The largest market share contribution is from South Sumatra with 63%, and Lampung with 21%, followed by Jambi with 15%, Bengkulu with 10%, and Bangka Belitung with 4%.

SMBR also managed to obtain revenues in 2019 amounting to IDR2.0 trillion or growing 1% compared to revenues in 2018 of IDR1.996 trillion.

With various efficiency programs implemented, in 2019 SMBR succeeded in reducing COGS by 12% so that its gross profit also increased 24% to IDR875 billion from IDR707 billion.

SMBR also managed to maintain operating profit of IDR234 billion in 2019.

However, SMBR's net profit in 2019 decreased to IDR30 billion due to an increase in financial costs attributed to interest expense on the investment credit of the Baturaja II Factory of IDR100 billion, and interest on MTN loans of IDR25 billion.

Meanwhile, SMBR's current ratio and Debt to Equity Ratio are still at safe levels, namely at 229% and 60%, respectively.