Good News From Matahari Department Store Owned By Conglomerate Mochtar Riady, They Will Disburse IDR 657.5 Billion Dividend

Matahari Department Store outlet, (Photo: Doc. Matahari Dept. Store)

JAKARTA - Modern retail company from the Lippo Group owned by conglomerate Mochtar Riady, PT Matahari Department Store Tbk (LPPF) has approved a dividend of IDR 350 per share for the 2021 financial year. This decision is in accordance with the results of the Annual General Meeting of Shareholders (AGM) held on Tuesday, April 5.

Matahari is noted to have paid an interim dividend of IDR 100 per share in December 2021. Thus, the final dividend to be paid will be IDR 250 per share.

The number of outstanding shares of LPPF is 2.63 billion shares so the total final dividend given is around IDR 657.5 billion. The final dividend will be paid on May 6, 2022.

Shareholders who are registered in the Company's register of shareholders on April 18, 2022 (recording date) are entitled to receive dividend payments. Going forward, management recommends paying dividends of IDR 500 per share for 2022 and 2023.

The AGMS also approved the Board of Directors' report for 2021, which stated that Matahari's net profit reached IDR 913 billion in 2021, an increase from the loss experienced in 2020 of IDR 873 billion. The AGM also agreed that the company's gross sales amounted to IDR 10.3 trillion, which was 20 percent higher than the previous year.

Matahari Vice President Director and CEO Terry O'Connor said the company will continue to expand its store network and has opened a new store at Plaza Ambarrukmo Yogyakarta on March 31, 2022. This outlet is the first store to open this year and the fifth store in Yogyakarta.

This opening is in line with Matahari's plans to accelerate its expansion and the opening of nine more new stores is slated for the remainder of the year, depending on the situation.

"The year 2021 marks a significant transition year at Matahari. We recently developed an ambitious multi-year strategy to position the Company on a profitable long-term growth path and create sustainable shareholder value," he said in a written statement.

As for the next 5 years, LPPF targets sales to increase by an average of 6 percent per year and reach IDR 26.3 trillion in 2026, with the contribution of sales outside physical outlets being able to increase to 13-15 percent in the next 5 years from only 7 percent during operational restrictions in the third quarter of 2021.