Financial Balance Maintained, AKR Corporindo Reveals Consistent Dividend Distribution

Director & Corporate Secretary AKRA Suresh Vembu. (Photo: Doc AKR Corporindo)

JAKARTA - PT AKR Corporindo Tbk (AKRA) revealed that Return on Equity (ROE) is maintained at the level of 25 percent and Return on Assets (ROA) is maintained at nine percent.

Director & Corporate Secretary AKRA Suresh Vembu said the Company's balance sheet and cash flow were maintained strongly so that they were ready to fund further developments and risk mitigation in the future.

"The company has also consistently paid the shareholders a reward, in the last 7 years the return to shareholders has reached IDR 8.2 trillion with an average dividend payout ratio of above 50 percent and dividend yield above 6 percent per year," he said at the 2024 Public Expose, Friday, August 30.

Suresh said, AKR has proven that the company's business model is quite resilient in dealing with various economic cycles.

So that the company managed to achieve a CAGR of 30.2 percent in the last 15 years.

With a strong business model combination, continued Suresh, equipped with an end-to-end logistics supply chain as well as a commitment to provide logistics services and the best industrial estate facilities to customers, the company's net profit has managed to grow significantly, especially since entering the momentum of soil monetization at the JIIPE Gresik SEZ.

Therefore, Suresh is optimistic that profit growth will increase to 8 percent throughout 2024 supported by the business of trading and fuel distribution, as well as land sales in the Java Integrated Industrial and Ports Estate (JIIPE) industrial area.

"With this, we are still optimistic that this year's growth in AKR can be around 7-8 percent profit growth this year compared to last year," he said.

Suresh said that she was optimistic that it came from two aspects, namely the performance of trading and distribution, and the second was from land sales and utilities at JIIPE.

In addition, Suresh believes that in the second half of 2024, AKR's performance can still grow, driven by the increasing demand for retail industry fuel and chemicals in Eastern Indonesia.

"Maybe this year we are still looking at the prospects for increasing land sales at JIIPE. Earlier in the presentation, we targeted to increase land sales at JIIPE," he explained.