Gudang Garam, Cigarette Company Owned By Conglomerate Susilo Wonowidjojo To Held AGMS, Distribute Dividends Or Not?

JAKARTA - The tobacco company PT Gudang Garam Tbk will hold an Annual General Meeting of Shareholders (AGMS) on July 8, 2021. One of the agendas that has become a concern for the issuer codenamed GGRM is the use of retained earnings.

In a statement from the management of GGRM on the Indonesia Stock Exchange, quoted on Tuesday, June 15, the company owned by conglomerate Susilo Wonowidjo will hold the 2020 AGMS at the Grand Surya Hotel, Kediri, on Thursday, July 8, 2021. There are 6 agenda items, one of which is the use of 2020 profits.

Based on financial reports as of December 31, 2020, Gudang Garam recorded revenue growth to Rp114.47 trillion, an increase of Rp3.95 trillion, or up 3.57 percent from revenue in 2019 which was Rp110.52 trillion.

The profit attributable to owners of the parent entity reached Rp7.64 trillion in 2020, down 29.19 percent from net profit in the previous year which amounted to Rp10.88 trillion.

Previously, at the 2019 AGMS, Gudang Garam decided not to distribute dividends from the profits for the 2019 financial year. The shareholders agreed to determine the use of the company's profits for the 2019 financial year entirely to be included in the retained earnings account.