“We are confident that the stock split will provide investors an affordable stock price and help attract a wider base of retail investors. Our strategy is very much supportive of the Stock Exchange’s goals of increasing the number of investors, active traders and transaction values in Indonesia’s stock market,†said President Director of Sampoerna, Paul Janelle.
During the shareholders meeting, the Company reported net revenue of Rp. 21.9 trillion in the first quarter of 2016. This was up 1.7% from Rp. 21.6 trillion in the first quarter of 2015.
Sampoerna also recorded its net profit to Rp. 3.1 trillion in the first quarter of 2016, up 7.6% from Rp. 2.9 trillion in the same period in 2015. Despite a 5.9% decline in the industry in the first quarter of 2016 and the ongoing soft economic environment, the Company continues to hold its leadership position in the Indonesian cigarette market with 34.1% market share. Shareholders also approved the payment of cash dividends with 99.9% of the total 2015 net income being distributed to shareholders.
The Company forecasts that Indonesia’s total cigarette market will decline 1-2% in 2016. This comes as a result of a weighted average tax increase for 2016 of 15% with value added tax (VAT) was also increasing. Thus, the Company looks forward to future excise tax policy decisions that are fair, predictable and designed to offer business certainty for sustaining the domestic industry, its farmers and workers.
“Considering the volatility and challenges faced by the market, we are very pleased to be providing shareholders with a strong dividend payout and maximizing their returns. Our concern is that additional excise tax increases or VAT changes may further undermine the industry and have a detrimental impact on the labor intensive hand-rolled kretek cigarette segment that employs hundreds of thousands of people in its production,†added Mr. Janelle.
Sampoerna ended 2015 as Indonesia’s largest taxpayer, with payments to the Government totaling approximately Rp. 67.2 trillion. As such, in January 2016 the Ministry of Finance recognized the Company for its significant contribution to the country’s excise income.
“We know that the tax income created by the industry and Sampoerna is extremely important for Indonesia and we are happy to do our part in generating revenue for the government to use for infrastructure projects and other priorities. We are also proud to be the market leader of an industry that employs six million people, including tobacco farmers, clove growers, kretek hand rollers, industry workers and small retailers,†concluded Mr. Janelle.
Following the approval of its shareholders, the Company also announced changes to the Company’s Board of Directors and Commissioners. Mr. Wayan M Tantra will serve as the new Vice President Commissioner, while Mr. Ivan Cahyadi and Ms. Mimi Kurniawan join as new Directors. Mr. Yos Adiguna Ginting also assumes responsibility as an independent Director. The management is confident that they will continue the success of the Company.
Reporter: PR Wire
Editor: PR Wire
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