Indocement shareholders approve disbursement of almost all 2014 profits as dividends

Indocement shareholders approve disbursement of almost all 2014 profits as dividends
Published: 15 May 2015


During an annual shareholders meeting in Jakarta on Wednesday the shareholders of PT Indocement Tunggal Prakarsa  approved the company’s proposal to pay dividends of about IDR4.96trn (US$381.9m) or IDR1350 per share, about 94 per cent of the profits recorded in 2014.

Indocement booked IDR5.27trn in profits in 2014, a 5.2 per cent increase from IDR5.01trn in 2013. During 2014, the company’s net revenues totaled IDR19.99trn last year, an increase from IDR18.69trn in 2013,

First-quarter update
In the first quarter of 2015, Indocement reported an eight per cent decline in sales volumes to 3.97Mt as Indonesia’s general economic slowdown triggered a 3.2 per cent decline in 1Q15 cement consumption.
Market share fell slightly to 28.5 per cent over the reporting period to 28.5 per cent compared to 30 per cent in the final quarter of last year as the company was selling selectively to areas to give a better margin.

Net revenues for the HeidelbergCement group company in 1Q15 declined by 3.8 per cent from IDR4499.8bn to IDR4327.5bn due to slower than expected market demand. Gross profit fell by 2.3 per cent to IDR1927.8bn (previous year: IDR1973.9bn). However, gross profit margin improved by 60bps to 44.5 per cent. Lower commodity prices in the 1Q15 positively contributed to the company’s cost base which was mostly offset by the higher PLN electricity grid price and further weakening of the rupiah.

Operating profit increased 4.5 per cent to IDR1275.8bn. EBITDA increased by 5.2 per cent from IDR1432.8bn to IDR1507.9bn in the first quarter of 2015, representing a margin increase of 300bps to 34.8 per cent. Operating margins benefited from strict cost control measures as well as a strategic focus on margin oriented actions.

On its outlook, the Indocement said: “With a healthy Balance Sheet supported by a strong cash position of iDR10.8trn, the company is in a financial position to continue expansion of cement capacities to participate in the promising growth prospects in Indonesia.” The construction of a new integrated 4.4Mta line at the company’s flagship Citeureup plant  is progressing according to plan. Completion is scheduled for the fourth quarter of 2015.