Good News From Hermina, This Hospital Company Will Distribute Rp75 Billion Dividend

Hermina Hospital. (Photo: Doc. Hermina Hospitals)

JAKARTA - The hospital company, PT Medikaloka Hermina Tbk (HEAL) plans to give appreciation to its shareholders through the distribution of cash dividends. The plan was approved at the annual general meeting of shareholders (AGM) which was held on Wednesday, June 2, 2021.

In the Meeting, it was agreed that the distribution of dividends amounting to Rp25 per share was approved. The dividend payout ratio paid by the company this time reached 15 percent more than the profit earned by the company in 2020.

According to the Director of Hermina Hospital, Aristo Setiawidjaja, the dividend distribution from the 2020 Fiscal Year's net profit of Rp. 25 per share is greater than the dividend distributed in the previous year which was Rp. 12 per share.

"Dividend of 25 per share or equivalent to Rp75 billion which will be paid in early July 2021," said Aristo after the HEAL GMS in Jakarta, Wednesday, June 2.

Throughout 2020, Hermina recorded net income of Rp4.42 trillion, and profit before interest, tax, depreciation and amortization (EBITDA) of Rp1.39 trillion. In addition, profit after tax and non-controlling interests (PATMI) reached Rp473.2 billion. This good performance exceeded the targets that have been communicated to the public.

Despite being in a challenging situation, the Company managed to adapt and play an active role in the national effort to tackle the COVID-19 pandemic. All hospitals under Hermina are able to receive and treat COVID-19 patients.

Hermina also ended 2020 with a good liquidity position with total cash of Rp985.7 billion, an increase from Rp593.3 billion in 2019. The company's balance sheet is in a very healthy position with a net debt to EBITDA ratio of 0.4x.

Another important achievement in 2020 was the issuance of Hermina's initial bond in September 2020 with an AA- rating, which aims to strengthen the financial structure, diversify funding sources, and meet the company's capital expenditure/working capital needs. This is a reflection of the optimism that investors have on the resilience of Hermina's business.

In terms of business development, Hermina recently opened the 42nd Hermina Hospital in Cibitung, Bekasi. Hermina is also currently building hospitals in Cilegon, Banten and Soreang, West Java. Hermina is expected to have 44 hospitals and 5,400 beds by the end of 2021.