Good News From Sampoerna, The Dji Sam Soe Cigarette Producer Will Give Dividends Of IDR 8.46 Trillion

Sampoerna Plant Illustration. (Photo: Doc. Antara)

JAKARTA - Cigarette producer, PT HM Sampoerna Tbk, will distribute a cash dividend for the 2020 financial year of IDR 72.8 per share. This was decided at the 2020 annual general meeting of shareholders which will be held on Thursday 27 May.

For the record, as of April 30, 2021, the number of Sampoerna's shareholders was 116.318.076.900 or around 116.31 billion shares. Thus, HMSP will distribute cash dividends of around IDR 8.46 trillion for the 2020 financial year.

The dividend amount is smaller than that distributed in 2019. Last year, the issuer coded HMSP shares distributed dividends with a payout ratio of up to 101.53 percent for the 2019 financial year, or IDR 13.93 trillion (IDR 119.8 per share).

In 2020, the cigarette manufacturers of the Djie Sam Soe and Sampoerna Mild brands will receive a profit for the year attributable to the owners of the parent entity amounting to IDR 8.58 trillion. This achievement dropped 37.46 percent compared to the 2019 acquisition of IDR 13.72 trillion.

HMSP posted a revenue of IDR 92.42 trillion in 2020. This acquisition was also 12.85 percent lower than the 2019 acquisition of IDR 106.05 trillion.

HM Sampoerna President Director Mindaugas Trumpaitis explained that the countermeasures for the COVID-19 pandemic and social restrictions create a challenging market environment and affect domestic demand.

Not only that, in 2020 there will be an increase in excise tax rates for tobacco products by a weighted average of 24 percent and an increase in retail selling price (HJE) of 46 percent. These two factors have an impact on reducing the volume of the national tobacco products industry by 9.7 percent in 2020, as well as having an impact on the performance of HMSP.

The challenging economic conditions resulted in a significant decrease in the company's sales volume, reaching 19.3 percent in 2020. "The COVID-19 pandemic has exacerbated the issue of people's purchasing power that even existed before the pandemic", said Mindaugas.

Even so, HMSP still maintains market leadership with a market share of 28.8 percent in 2020.