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Indofood, subsidiary pay total Rp 920 billion in dividends
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Publicly listed Indofood Sukses Makmur’s president director Anthoni Salim (left to right), along with Indofood directors Axton Salim and Fransiscus Welirang, prepares to leave the company's annual shareholders meeting in Jakarta on May 8, 2015. (The Jakarta Post/Don)
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ublicly listed food and beverage company Indofood Sukses Makmur Tbk and its subsidiary Indofood CBP Sukses Makmur Tbk paid Rp 624.18 billion (US$46.3 million) and Rp 278.34 billion in dividends from last year’s profits.
Indofood’s dividends equaled Rp 168 per share while Indofood CBP’s were worth Rp 256 per share. The Salim-owned company booked Rp 1.28 trillion in net profit last year, while the subsidiary posted Rp 556.67 billion.
"We kept the payout ratio at 50 percent, so Indofood’s dividend per share declined because of the loss in foreign exchange and increasing raw materials that slashed our margin," Indofood president director Anthoni Salim said after an annual general meeting (AGM) in Jakarta on Friday.
However, in the first quarter of 2016, both companies recorded increased income. Indofood’s profits soared 24.8 percent year-on-year to Rp 1.28 trillion while Indofood CBP’s increased 18.58 percent to 944.78 billion.
According to Anthoni, a recovery trend in domestic demand since the second half of last year had driven the increase in both companies’ net income. Indofood mostly depends on the domestic market.
"Ideally, for consumer goods manufacturing, exports must be around 20 to 25 percent. Our exports are still 9 percent of total sales. We will slowly increase it to 10 percent, then 15 percent, until we reach the ideal figure," he said.
To boost performance this year, Indofood allocated Rp 7.6 trillion of capital expenditure while Indofood ICBP prepared Rp 3.9 trillion. Among other plans, the company will build four new food factories in the next three to four years, requiring a total investment of Rp 1.6 trillion. (ags)
