Review & Analysis of Financial Performance by Segment
Chemical Industry
Parent Company
PT Unggul Indah Cahaya Tbk (UIC)UIC has three production units of Alkylbenzene (AB) with a production capacity of 270,000 MT per year. AB is the active substance in detergents which is the basic ingredient of surfactants which functions to release dirt that sticks to the surface of the material.Production Process: Normal Paraffin converted to Olefin is reacted with benzene using HF Acid as catalyst.World crude oil average prices during 2024 is slightly lower than 2023. For the first half of 2024, crude oil prices showed an uptrend, however in the second half of 2024 crude oil prices showed a downtrend.In line with the movement of crude oil price trends, the Company’s selling price products also increased in the first semester, and decreased in the following semester, although on average the selling price of products in 2024 was lower than the average selling price in 2023. Nevertheless, the increase in sales volume can compensate the Company to record a higher sales value than the previous year.Although the Covid-19 pandemic has ended, it has impacted market demand for industrial and household cleaning products which is higher than previous year due to increased public awareness of cleanliness. This has impact to the Company’s performance, where the finished goods products of the Company is the raw materials for the manufacture of detergent products.Sales value on 2024 increased by 5.13% from USD 249.29 million in 2023 to USD 262.08 million in 2024. The increased in sales value mainly came from the increase in the sales volume.As a trusted reliable business partner to maintain smooth supply to customers, the Company has a policy to have adequate inventory. Therefore, the downtrend selling price in this year caused to stress the Company’s gross profit margin, since the cost of inventories is based on the acquisition price of raw material when crude oil are hight while the selling price is already adjusted with current lower crude oil price.In 2024, the Company recorded a gross profit margin of 12.21%, slightly smaller than the gross profit margin in 2023 which was 13.35% So that in 2024, the Company recorded a decrease in gross profit of 3.84% from USD 33.28 million in 2023 to USD 32.00 million in 2024.Total operating expenses in 2024 increased by 18.22% compared to 2023, from previously recorded at USD 10.20 million to USD 12.06 million. Throughout 2023, Rupiah slighly appreciated against US Dollar which opened at IDR 15,731 at the beginning of year and closed at IDR 15,416 at end of year 2023, while in 2024 the Rupiah weaked by 4.83% and closed at IDR 16,162 at the end of 2024. The weakening of the Rupiah currency resulted the Company suffering an operating foreign exchange loss on monetary assets denominated in Rupiah of USD 1.17 million, while in 2023 the Company recorded an operating foreign exchange profit of USD 0.43 million from the strengthening of the Rupiah currency. This increase in foreign exchange loss is the main contributor to the Company’s soaring operating expenses in 2024.In 2024, UIC recorded an operating profit of USD 19.94 million, a decrease of 13.60% compared to operating profit in 2023 which was recorded at USD 23.07 million. Profit before income tax decreased by 9.54% from the recorded USD 27.61 million in 2023 to USD 24.98 million in 2024.Income tax expense decreased by 14.94% from the recorded USD 5.18 million in 2023 to USD 4.41 million in 2024, in line with the decrease of profit before income tax. Thus, profit for the year (net profit) in 2024 was recorded at USD 20.57 million, a decrease of 8.29% compared to net profit in 2023 which was recorded at USD 22.43 million.SubsidiariesPT Petrocentral (Petrocentral)On January 10, 2024, the Company acquired shares of Petrocentral from PT Petrokimia Gresik, which increased the Company’s percentage of ownership in Petrocentral increased from of 61.72% to become 70.13%.Petrocentral is a subsidiary of the Company that operating in Gresik, East Java and the sole producer of Phosphoric Acid Food Grade (PAFG) and Sodium Tripolyphosphate (STPP) and in Indonesia with an installed production capacity 40,000 MT per year. PAFG is mostly used as degumming in the crude oil palm refining process, while STPP is one of the raw materials of detergent, which functioned as water softener, thereby increasing the cleaning power of detergent.PAFG being start to be marketed by Petrocentral in 2023. Customer confidence in products quality is reflected in the increasing market demand for PAFG which previously has been fully supplied by imported goods. The STPP sales volume trend increased by 33.2% in 2024, while sales volume of PAFG also increased by 58.47%. The sales value increased by 36.18%, from USD 9.20 million in 2023 to USD 12.52 million in 2024.The increase of production volume in 2024 reduced production costs per unit so that even though the selling price was highly competitive with imported products, Petrocentral managed to record gross profit at USD 1.09 million and operating profit recorded at USD 0.42 million in 2024. Meanwhile in 2023 gross loss and operating loss were recorded at USD 0.88 million and USD 1.61 million, respectively.In running its business, Petrocentral obtains funding from banks and shareholders. Petrocentral’s financial coses is primarily consist of expenses related to this funding.Petrocentral recorded loss before tax of USD 5,517 and net profit of USD 2,984 in 2024. Meanwhile, in 2023, Petrocentral recorded loss before tax of USD 1.99 million and net loss of USD 2.01 million.Petrocentral continuing to improve efficiency, price and volume negotiations with both raw material suppliers and STPP customers. Petrocentral’s operations are highly dependent on the smooth supply and competitive prices of raw materials namely phosphoric acid from PT Petrokimia Gresik. Petrocentral faces price competition with imported PAFG and STPP products especially from China. The PAFG and STPP domestic market provides excellent opportunities for Petrocentral, which so far has been supplied 100% by imported products.Petrocentral has obtained the ISO 9001:2015 certification for the quality management system (Quality Management System) from Standard Assurance and Innovation (SAI) Global Limited since 2004. In addition, Petrocentral also has ISO 22000:2019 certification for the food safety management system issued by Standard Assurance and Innovation (SAI) Global Limited since 2016.UIC Vietnam Co., Ltd. (UICV)The Company has 100% shares ownership in UICV.UICV has a factory located in Dong Nai, Vietnam and engages in production and distribution of Linear Alkylbenzene Sulphonic Acid (LABSA) and Sodium Lauryl Ether Sulphate (SLES) with installed production capacity of 33,000 MT per year. Currently, UICV is in the stage of increasing its production capacity to become 62,000 MT per year. The increase capacity of this plant has been completed by the end of March 2025LABSA is a main cleaning component in detergent. While, SLES is a surfactant commonly used in cosmetic products because of its cleaning and emulsifying properties. SLES is effective as a foaming agent.UICV’s commitment in customer satisfaction by providing high quality product is reflected in the renewal of the ISO 9001:2015.In 2024, UICV’s production and sales volumes decreased by 7.49% and 5.61%, respectively compared to 2023. The sales value in 2024 was recorded at USD 23.39 million, a decrease of 10.00% compared to the sales value in 2023 which was recorded amounting to USD 25.99 million.Gross profit margin in 2024 increased from 5.86% in 2023 to 6.13% in 2024. Gross profit in 2024 was recorded at USD 1.43 million, a decrease of 5.90% compared to gross profit in 2023 which was recorded at USD 1.52 million. Thus, UICV recorded a net profit in 2024 of USD 0.17 million, a decrease of 43.88% compared to a net profit in 2023 which was recorded at USD 0.30 million.Universal Interchemicals Corp. Pte., Ltd. (UICPL)The Company has 100% shareholding in UICPL.UICPL is the Company’s subsidiary in Singapore with registered Company Number 199100093N. UICPL is a holding company that has 100% shareholding in AWAL, a Company’s subsidiary in Australia which involves in Surfactant manufacturing and Phosphate and other chemicals product trading. Since June 2020, UICPL has no longer conducts chemical trading business activities.In 2024, under cost method, UICPL recorded net profit of USD 848 thousand while in 2023 of USD 830 thousand. This net profit was mainly represented dividend income received from Albright & Wilson (Australia) Limited.Albright & Wilson (Australia) Limited (AWAL)AWAL is a manufacturer of Surfactant product line, raw material for detergent and indirect raw material for concrete and plasterboard additive. These products are applied in such industries such as personal care, paper, shampoo, mining and mineral processing, medicines, fertilizer, building and water treatment.AWAL owns 100% shares of Albright & Wilson New Zealand, a trading company which provides marketing and warehouse facilities for AWAL products in New Zealand. Factory location of AWAL is in Wetherill Park – New South Wales and AWAL has achieved ISO 9001:2015 certification. Sales, marketing and warehouse facilities are located in Brisbane, Melbourne, Perth and Sydney. AWAL also perform sales and marketing activities of Phosphate and other chemicals products.The sales value of AWAL in 2024 was recorded at USD 71.19 million, a decrease of 7.48% compared to the sales value in 2023 which was recorded at USD 76.95 million. AWAL’s gross profit in 2024 decreased by 3.90%, from USD 10.87 million in 2023 to USD 10.45 million. Gross profit margin in 2024 was 14.68% while gross profit margin in 2023 was 14.13%.Profit before tax increased by 7.11% from USD 4.02 million in 2023 to USD 4.31 million in 2024. Thus, AWAL’s net profit in 2024 was recorded at USD 3.01 million, an increase of 6.44% compared to the net profit recorded in 2023 which was USD 2.83 million.Property IndustryIn addition to chemical industry, the Company also expands its business into property industry. The Company’s subsidiaries engaged in this field are as follows:PT Unggul Indah Investama (UII)The Company’s has 99.99% shares ownership in UII.UII is a holding company that was established in 1996 to accommodate the Company’s plan to participate in PT Wiranusa Grahatama (WG), a joint venture company in developing an office and apartment building complex. All UII shares, minus 1 (one) share, are owned by the Company. Since 2005, UII became a major Shareholders of WG with 55% share ownership.Based on the shareholders’ circular decision of UII dated December 15, 2022 which were approved by the Minister of Law and Human Rights in Decision Letter No. AHU- 0011172.AH.01.02. TAHUN 2023 dated February 17, 2023, the shareholder of UII agreed to the increase of authorized share capital from IDR 500 billion to IDR 1.3 trillion and the increase of the issued and fully paid share capital from IDR 250.5 billion to IDR 341.5 billion. UII does not carry out business activities in 2024 and 2023.PT Wiranusa Grahatama (WG)UII has 55% of shares ownership in WG.WG is a subsidiary which develops office and apartment building complex on its 3.2 hectares of land located in the main business district of Jakarta in Jl. Jenderal. Gatot Subroto. The apartment complex that has been built is Pearl Garden Resort Apartment Complex has 235 units of apartment on 1.7 hectares land with low-rise apartment concept. WG still has 1.4 hectares land that will be built for office and residential complex development with highrise.WG planned to continue developing the office and residential complex development project on the remaining available land. In 2024, WG posted operating expenses of IDR 15.08 billion, an increase of 1.81% compared to operating expenses in 2023 which was recorded at IDR 14.82 billion. The operational expenses are mainly from the property tax (PBB) expense on property owned by WG.Thus, the loss before tax in 2024 was recorded at IDR 9.05 billion, a decrease of 4.36% from the loss before tax in 2023 of IDR 9.46 billion. Net loss for 2024 was IDR 9.02 billion, a decrease of 4.29% compared to net loss in 2023 which was recorded at IDR 9.43 billion.To fund the development of the property project on the remaining WG land, WG’s shareholders have increased WG’s capital. Based on the shareholders’ circular resolution of WG dated December 15, 2022 which were approved by the Minister of Law and Human Rights in Decision Letter No. AHU-0011170. AH.01.02 year 2023 dated February 17, 2023, the shareholders of WG agreed to increase of the authorized share capital from IDR 400 billion to IDR 1.8 trillion and the increase of the issued and fully paid share capital from IDR 302 billion to IDR 467 billion, which were subscribed by all WG shareholders based on their respective percentage of ownership.Consolidated Financial StatementsConsolidated Statement of Comprehensive IncomeWorld crude oil average prices during 2024 is slightly lower than 2023. For the first half of 2024, crude oil prices showed an uptrend, however in the second half of 2024 crude oil prices showed a downtrend.In 2024, the global economy continued to experience a slowdown in growth, accompanied by heightened uncertainty. Global economic challenges continued to be marked by rising geopolitical risks and ongoing fragmentation of international trade.Nevertheless, the Indonesia’s economic performance remained resilient, demonstrating strong capability in withstanding the global spillover effects. Indonesia’s economic growth in 2024 stood at 5.03%, primarily driven by domestic demand, in line with sustained investment activity.In 2024, market demand for industrial and household cleaning products is increase compared to 2023. This has a positive impact on the performance of the Company and its subsidiaries which produce raw materials for cleaning products.In 2024, both the average selling price of products and raw materials for the Company and its subsidiaries experienced a decrease driven by the decrease in world crude oil prices. Nevertheless, the Company’s consolidated revenues still recorded an increase, along with the increase of sales volume.In 2024, the Company recorded a consolidated revenues of USD 344.68 million, an increase of 1.58% or USD 5.38 million compared to the consolidated revenues in 2023 which was recorded at USD 339.30 million. Gross profit in 2024 was recorded at USD 44.58 million, a decrease of 2.18% compared to that recorded in 2023 of USD 45.57 million. At the end of 2024, the Company recorded a gross profit margin of 12.93%, while the gross profit margin in 2023 was recorded at 13.43% .In addition to the decrease in gross profit mentioned above, the Company also recorded a net foreign exchange losses in 2024, compared to a net foreign exchange gains in 2023, primarily due to the weakening to the Rupiah against the US Dollar in 2024. As the results, the Company’s operating profit in 2024 decreased by 9.05% from USD 26.05 million in 2023 to USD 23.70 million. Placements of cash and cash equivalents earned a higher interest rates compared to 2023, resulting in the Company recording net interest income of USD 3.23 million in 2024 and USD 2.28 million in 2023. Profit before tax in 2024 was recorded at USD 26.05 million, a decrease of 6.05 % from the previous year which was recorded at USD 27.86 million. In 2024, the Company recorded income tax expense of USD 5.54 million, a decrease of 14.38% compared to income tax expense of USD 6.47 million in 2023.Thus, in 2024, the Company recorded a profit for the year attributable to equity holders of the parent of USD 20.76 million, a decrease of 7.46% compared to profit attributable to equity holders of the parent in 2023 which was recorded at USD 22.43 million.The current year’s loss attributable to non-controlling interests decreased by 76.65% from the previous recorded loss in 2023 of USD 1.05 million to a loss of USD 0.26 million in 2024. This is mainly due to the improvement in business performance from Petrocentral.The exchange difference from financial statements translation is mainly the difference in the exchange rate at the end of 2023 and 2024 which is used to translate the financial statements of the Company’s subsidiaries whose operating currency is not denominated in US dollars.In 2024, the Company recorded total comprehensive income for the year of USD 16.86 million, a decrease of USD 4.97 million or 22.77% compared to total comprehensive income in 2023 which was recorded at USD 21.83 million.Consolidated EBITDA (Earnings before Interest, Tax, Depreciation and Amortization) for 2024 was USD 26.38 million, while consolidated EBITDA for 2023 was USD 28.74 million, a decrease of 8.19%.The credit facilities provided by creditor banks require the Company to maintain a minimum financial ratio of EBITDA to net interest expense of 2:1 and a ratio of interest-bearing liabilities after deducting cash and cash equivalents to a maximum of 2.5:1.As of December 31, 2024, the Company has complied with the financial ratios required by creditor banks.Consolidated Statement of Financial PositionAssetsThe value of inventories decreased in line with increasing of sales volumes and a decrease in raw material prices in the last quarter of 2024 compared to the last quarter of 2023.Consolidated current assets as of December 31, 2024 were recorded at USD 282.07 million, an increase of 2.87% compared to consolidated current assets as of December 31, 2023 which was recorded at USD 274.19 million. The increase was mainly in cash and cash equivalent. Most of the Company’s current assets are cash and cash equivalents, inventories and trade receivables, which reflecting 97.82% and 97.48% of total current assets for 2024 and 2023, respectively. Meanwhile, non-current assets with the main components of fixed asset and investment property in 2024 were recorded at USD 59.38 million, a decreased by 2.69% compared to 2023 which was recorded at USD 61.02 million.The Company’s total consolidated assets on 31 December 2024 were recorded at USD 341.45 million, an increase of 1.86% compared to the Company’s total consolidated assets on 31 December 2023 which were recorded at USD 335.21 million.LiabilitiesTotal current liabilities in 2024 were recorded at USD 36.71 million, experienced decrease by 7.35% compared to total current liabilities 2023 which was recorded at USD39.63 million.Total long-term liabilities in 2024 decreased by 16.30% from previously recorded at USD 5.21 million in 2023, to USD 4.36 million in 2024. This decrease was mainly due to the decrease in lease liabilities.Thus, the Company’s total consolidated liabilities as of December 31, 2024 were recorded at USD 41.08 million, a decrease of 8.39% compared to total liabilities on December 31, 2023 which was recorded at USD 44.84 million.EquityRetained earnings for 2024, after taking into account the profit for the year attributable to equity holders of the parent of USD 20.76 million, cash dividend of USD 6.73 million and profit on remeasurement of defined benefit plans of USD 0.25 million, was recorded at USD 223.81 million, an increase of USD 14.28 million or 6.82% compared to retained earnings in 2023 which was recorded at USD 209.53 million.Cash dividends distributed to shareholders in 2024 represent final dividends for the year 2023 of USD 6.73 million (equivalent to IDR 109.63 billion or IDR 286 per share) distributed to shareholders on July 19, 2024.Non-controlling interests in 2024 were recorded at USD 10.83 million, a decrease of 6.31% compared to the previous year which was recorded at USD 11.56 million. This decline was mainly due to the weakening of the Rupiah currency, resulting to a decrease in the recorded net asset value of WG in the Company’s consolidated statement of financial position statement in the US Dollar currency. Thus, the total equity as of December 31, 2024 was recorded at USD 300.37 million, an increase of 3.44% from USD 290.37 million as of December 31, 2023.Consolidated Statement of Cash Flowsa. Cash flows from operating activities:In 2024, net cash obtained from operations increased by USD 27.31 million from 2023 which was recorded at USD 15.24 million to USD 42.55 million. The increase in net cash derived from operating activities was mainly due to the increase from cash generated from operations mainly from the decrease of payment to raw materials suppliers.b. Cash flows from investing activities:Net cash used for investing activities in 2024 was recorded at USD 3.37 million, decreased by USD 0.58 million compared to 2023 which was recorded at USD 3.95 million. The use of funds for investment activities is mainly to finance the increase in plant capacity in Vietnam.c. Cash flows from financing activities:Net cash used for financing activities in 2024 was recorded at USD 8.78 million, while in 2023 it was recorded at USD 7.81 million, an increase of 12.42%. Increase in net cash activity used for financing was due to in 2023 there was additional capital contribution by non-controlling shareholders.DEBT PAYING ABILITYThe Company received working capital credit facilities from bank creditors in order to support working capital needs. Bank creditors required requirement financial ratios are fully complied at the end of 2024 and 2023, the Company met all the required ratio. All bank creditors extended all matured credit facility.
RECEIVABLE COLLECTABILITY LEVELBased on the review at end of the year 2024, the management believed that the allowance for impairment of USD 15 thousand at the end of 2024 is adequate to cover any possible losses on uncollectible trade receivables. There is no indications of impairment in the value of other receivables, thus no allowance for impairment in value pf other receivables necessary.
CAPITAL STRUCTUREThe details of the Shareholders and their respective shareholdings as of December 31, 2024 and 2023, based on records performed by the stock administration bureaus are as follows:
Capital ManagementThe primary objective of the Company’s capital management is to ensure that it maintains healthy capital ratios in order to support its business and maximize Shareholders value. In addition, the Company is also required by the Corporate Law No. 40 year 2007 to set aside a portion of net profit each year for mandatory reserves that are only used to cover losses. Reservesmust be made until the reserves reach at least 20% of the issued and fully paid share capital. This externally imposed capital requirements are considered by the Company at the Annual General Shareholders Meeting (GSM).The Company manages its capital structure and makes adjustments to it, in light of changes in economic condition. To maintain or adjust the capital structure, the Company may adjust the dividend payment to Shareholders, issue new shares or raise debt financing.The Company’s policy is to maintain working capital ratio and a healthy capital structure in order to secure access to finance at a reasonable cost. No changes were made in the objectives, policies or processes as of December 31, 2024 and 2023.SIGNIFICANT AGREEMENTSThere is no significant agreements other than those disclosed in note 34 to the consolidated financial statements, "Significant Agreements".INVESTMENT OF CAPITAL GOODSInvestment of capital goods that realized in 2024 was USD 3.2 million, increased from investments of capital goods in 2023 which reached USD 3.0 million. Investment of capital goods in 2024 mainly used for supply of machine and equipment.SIGNIFICANT INFORMATION AND FACTS AFTER THE ACCOUNTANT’S REPORT DATEThere is no significant event occurred from end of reporting period until the date of financial statement was authorized for issue.
BUSINESS PROSPECT AND STRATEGYIndonesia is a good potential market for the growth of detergent industry. Its total population of around 281.6 million people in 2024 and with level of detergent usage per capita relatively lower than other countries. Can provide high potential market for the growth of UIC and its subsidiaries in the future.However, the huge potential of domestic market has drawn attention of international players to enter domestic Alkylbenzene market, with the entry of Alkylbenzene and its derivatives products. Another challenge for the Company is the fluctuation of world crude oil prices which greatly affect the price of raw materials and also the Company’s selling price, besides supply and demand factor.Besides that, the reduction in the price of natural-based surfactants (palm oil) as ingredients that can be used as alternative raw materials for producing detergents is another challenge.Facing these challenges, the Company implemented the following strategies:- Growing together with customers by being a reliable business partners;
- Improving customer satisfaction by providing a commitment to quality, quantity and competitive prices while maintaining the Company’s profitability;
- Improving the business synergies with subsidiaries;
- Conducting integration into upstream industry, NormalParaffin to maintain the availability of raw materials at a competitive cost;
- Maintaining the stability of plant utilization that allows the Company to reduce overall production costs, to increase the efficiency of raw materials, fuel and electricity consumption. This will be developed through the optimization of plant operation and implementation of production process modifications along with technical know-how of license owners and the Company’s inhouse engineers.
Despite focusing on domestic market potential, the Company endeavour to achieve a strong position in the international market, by continuing to expand and explore every export opportunity.Storage warehouses which are located in Merak, Banten and Gresik, Jawa Timur, are ready to serve clients all over Indonesia. The availability of 16 MT up to 27 MT fleet ready to deliver goods on time is one of the Company’s competitive advantage to expedite the customers production process and to reduce their storage costs.In property sector, land available for development with area of 1.4 hectares is strategically located in Jakarta central business district.With the bright business prospects, business strategies, competitive advantages and long experiences, we are confident in facing challenges in the future. and deliver satisfactory results for stakeholders.COMPETITIVE ADVANTAGEUIC is a sole producer of Alkylbenzene in Indonesia, supported by its experience of more than thirty years in the industry and modern technology used in its operations. The Company competes with overseas producers in setting competitive selling price. The Company’s credibility to keep its products quality hasbeen recognized through the certification of international quality ISO 9001:2015 that were obtained since 2003. Moreover, the Company also obtained certifications of ISO 14001:2015 since 2004 for its commitments in preserving its environments. In 2023, the Company also obtained ISO 45001:2018 international quality standard certification for Occupational Health and Safety Management System (SMK3) from the accreditation agency AMTIVO.The just-in-time delivery system implemented by the Company has allowed the Company to supply the customers punctually. The ability to implement this delivery service enables our customers to reduce their storage cost and manage their stock.COMPANY TARGET
Target of 2024 consolidated revenue was USD 374.02 million with a gross profit margin of 13.42%. Profit before tax is expected to be 8.01% of revenue value or USD 29.97 million and profit for the year attributable to equity holders of the parent of USD 23.40 million.The realization achieved in 2024 showed that the revenue was recorded at USD 344.68 million, 7.85% lower than the 2024 target. Gross profit in 2024 was recorded at USD 44.58 million, a decrease of 11.20% from the targeted gross profit of USD 50.20 million. Thus, profit before income tax decreased by USD 3.93 million or 13.10% of the target, to USD 26.05 million and profit for the year attributable to equity holders of the parent for 2024 decreased 11.29% of the target 2024, from USD 23.40 million to USD 20.76 million. The achievement of realization in 2024 missed the target mainly from the downtrend in selling prices in line with the decline in world crude oil prices.With the assumption an increase in sales volume of 8.58%, stable exchange rate and good economic growth, the Company has set a consolidated revenue target for 2025 of USD 371.82 million, 7.87% higher than realized revenue in 2024. Gross profit in 2025 is targeted at USD 46.91 million, 5.22% higher than gross profit in 2024. Profit before income tax is targeted at USD 27.95 million while profit for the year attributable to equity holders of the parent is targeted at USD 22.13 million.For 2025 the Company has no plans to make changes to its capital structure. The Company plans internal financing to fund the capacity increase of the PACOL plant in 2025. For dividend policy, the Company plans a dividend for the 2024 book year which will be paid in 2025 ± 30% of the Company’s net profit.MARKETING ASPECTIndonesia is a potential market for the growth of detergent industry with large population and level of detergent usage per capita which is relatively lower than developed countries. As an Alkylbenzene sole manufacturer, The Company focuses on domestic market potential and dominates almost all domestic market shares. Most of the Company’s customers are prominent detergent producers, including Wings Group, Unillver, Kao, Sinar Antjol and Indo Sukses Sentra Usaha (ISSU) as well as sulphonation company such as Solvay Manyar.The Company endeavors to achieve a strong position in the international market, by continuing to expand and explore every export opportunity, The Company exports its product to several countries such as Vietnam, Malaysia, Thailand, Australia, Japan, China, Netherland, France and South Korea.The Company’s subsidiaries in Vietnam and Australia also market its products to leading customers such as Net, Lix, Unilever, Colgate, Jalco dan Pax. Likewise, PAFG Petrocentral products are consumed by leading customers such as PT Cheil Jedang Indonesia, Sinar Mas Group, Musim Mas Group, Wilmar Group, PT Daesang Ingredient Indonesia and PT Mega Surya Mas.DIVIDEND POLICYThe Company’s Dividend Policy is to provide an attractive rate of return where the amount of dividends is adjusted to the Company’s profits in the relevant financial year, without neglecting the needs and financial soundness of the Company and without prejudice to the rights of the General Meeting of Shareholders to determine otherwise in accordance with the provisions of the Company’s Articles of Association.The Annual General Shareholders Meeting (GSM) for the year 2023 that held on June 14, 2024, was decided to distribute dividends for the year 2023 of USD 6.73 million, with a dividend payout ratio of 30% from profit for the year attributable to equity holders of the parent for the year 2023 which was recorded at USD 22.43 million. The dividend was paid in Rupiah currency based on Bank Indonesia’s middle rate on June 12, 2024, which was IDR 16.295 per USD or equivalent to IDR 109.63 billion. Dividends were distributed to 383.331.363 shares or equivalent to IDR 286 per share and has been paid on July 19, 2024. The decision of this GSM has been stated in the Deed of Minutes of the Annual GSM No. 125 dated June 14, 2024 made by Notary Christina Dwi Utami, S.H., M.Hum., M.Kn.
As for the book year 2022, based on the Annual GSM for book year 2022 which was held on June 13, 2023 and has been stated in the Deed of Minutes of Annual GSM No. 114 dated June 13, 2023 made by Notary Christina Dwi Utami, S.H., M.Hum., M.Kn., it was decided that the dividend for the year 2022 was USD 9.26 million with a dividend payout ratio of 24% from profit for the year attributable to equity holders of the parent for the year 2022 which was recorded at USD 38.41 million. The dividend was paid in Rupiah currency based on the middle rate of Bank Indonesia on June 9, 2023, which was IDR 14,903 per USD, with a total dividend value of IDR 138 billion or equivalent to IDR 360 per share for 383,331,363 shares. The final dividend for the year 2022 has been paid on July 12, 2023.-bt25-
Management Discussion and Analysis