Strengthening Financial Structure, Latinusa Doesn't Divide Dividends

Illustration. (Photo: Doc. Antara)

JAKARTA - The Annual General Meeting of Shareholders (AGMS) of PT Pelat Timah Nusantara Tbk (NIKL) or Latinusa which took place today, Thursday, April 6, decided not to distribute dividends for the 2022 financial year. This was done by the company to strengthen the financial structure.

Latinusa's Finance Director, Abdul Haris Suhadak explained, the AGMS decided to place as much as 3.1 million US dollars or 42 percent of 2022's net profit as mandatory reserves in accordance with the provisions of the Limited Liability Company Law. The rest, as much as 4.13 million US dollars or 58 percent of net profit will be placed as retained earnings balance.

"So, in this position, with this condition where the company recorded a very large bank debt of US$95 million. By considering the company's prospectus to strengthen finances, 2022 will not distribute dividends," he said.

Meanwhile, the President Director of Latinusa, Jetrinaldi added, that the company is strengthening its financial structure by increasing the retained earnings balance, so that this year it does not distribute dividends.

"Last year we distributed dividends because we haven't distributed dividends for a long time. But this year we need to strengthen the financial structure," he said.

In 2022, Latinusa posted a sales value of 255.34 million US dollars, an increase of 21.17 percent from the acquisition of 210.73 million US dollars in 2021. Sales in 2022 managed to exceed the set target.

"In the midst of fluctuations in market conditions, Latinusa is always consistent in optimizing the diversification of the market segment being served. This is done with a focus on maximizing sales in the premium market segment, as well as taking advantage of the continuation of the price increase trend to achieve optimal sales rates in an effort to encourage the level of profitability achieved by the Company," he explained.

He revealed, production results in 2022 reached 97 percent of the target set.

Despite facing dynamic market challenges, Latinusa is able to optimize market momentum-aligned production capabilities and positive price trends by responding to consumer demands, particularly focusing on premium segments that require higher quality standards with better price margins to support performance and profit achievement.

"As a result, Latinusa recorded a profit before tax of 9,150,691 US dollars in 2022 compared to the performance in 2021 which amounted to 11,079,660 US dollars, but with tax calculations, net profit for the current year increased by 21.57 percent with 7,127,218 US dollars compared to 5,862,823 US dollars in 2021," he concluded.