Kusuma Kemindo Sentosa Will Distribute IDR 1.5 Billion Dividend

Illustration. (Photo: Doc. Antara)

JAKARTA - PT Kusuma Kemindo Sentosa Tbk (KKES) held an Annual General Meeting of Shareholders on Friday, May 19. At the meeting, Kusuma Kemindo Sentosa shareholders agreed to distribute cash dividends of IDR 1.5 billion.

This amount is equivalent to 22.87 percent of the company's net profit for the 2022 financial year which was recorded at IDR 6.21 billion.

"A total of IDR 1.5 billion or 22.78 percent of the comprehensive profit will be divided into dividends. Around IDR 50 million will be recorded as reserve funds. And the remaining profit will be used to strengthen working capital," said Director of PT Kusuma Kemindo Sentosa Tbk, Melly Elita in a public expose, which was monitored virtually.

Dividends will be paid on June 20, 2023. The allocation for the use of net profit in 2022 has taken into account the planned sustainability of the KKES business, so the Company ensures that the allocation does not interfere with sustainable operational activities and business development.

The decision has also considered performance achievements. Where on the top line, sales grew 2 percent from IDR 226.4 billion in 2021 to IDR 230.72 billion in 2022. In addition to dividend distribution, the meeting also approved the use of IPO funds.

Kusuma Kemindo Sentosa or KKES as a subsidiary company of PT Catur Sentosa Adiprana Tbk which is engaged in the distribution of chemicals that were established in 1990 and IPO in August 2022.

As previously stated on the prospectus, the company has realized the opening of a branch office in Cirebon at the end of 2022 and continues to prepare other branch opening plans to strengthen the company's sales office and distribution network for sustainable business growth.

Based on the information disclosure report that was submitted in April 2023 to the Financial Services and Exchange Authority, here is an update on the development of KKES IPO funds:

- 65 percent of IPO funds have been used for the purchase of goods / capital; - 30 percent of IPO funds have been used for operational costs - 5 percent of IPO funds for the development of the IT system have been used 0.4 percent

The President Director of KKES, Kiki Rusmin Sadrach, explained that the use of the IPO funds was as stated in the prospectus. The remaining IPO funds are planned to be used up in the 2023 financial year. The remaining allocation of IPO funds will be intended to update the IT system in order to improve services and quality.

In addition, the Company has also succeeded in adding several new products, including Hydrogen Peroxide (H2O2), Benzyl Benzoate, Alkyl Phenolic Resin, Eberle Specialty Product, Monosodium Glutamate (MSG) and others which are widely used for the textile industry, cleaning (cleaning), coloring (dyeing), paper, skin, glue (lem), and others.

The company has also increased the strength of productive sales headcounts to support and strengthen sales teams and get new customers as well as strengthen relationships with existing customers.

As for 2023, the Company is also targeting the expansion of 2 branch offices to Denpasar City and Medan. In addition, it will gradually continue to rejuvenate the distribution of distributions such as trucks in branches so that it will increase efficiency and productivity.

He added, in 2023 PT Kusuma Kemindo Sentosa Tbk targets sales to grow by 19 percent and net profit to grow by 60 percent. To realize this target, the Company has budgeted a capital expenditure of IDR 2.6 billion. The decision has taken into account the latest global and national conditions.

Management is taking seriously and cautiously (prudents) into account global factors that have occurred, such as the Russia-Ukraine war since March 2022 which has an impact on the economies of many countries to this day and also has an impact on most sectors, including: clothing, food, industry including commodity raw materials.

In addition, there is high inflation and recession, especially in major supply countries in the world, including: China, America, Europe and Japan which ultimately cause fluctuations in the price of industrial raw materials, which have an impact on weakening domestic demand and disrupting the export market.