Surabaya, April 04, 2024 – PT Avia Avian Tbk (“AVIA”) has decided to distribute a dividend of Rp 22 per share attributable to the owners of the Company's parent entity. This decision was agreed upon and approved through the Annual General Meeting of Shareholders (AGMS) held on Thursday, April 4, 2024.
The total cash dividend distributed amounted to Rp 1.36 trillion, representing a dividend payout ratio of 83.0% of the net profit for the 2023 financial year, which was recorded at Rp 1.64 trillion, with a net profit margin of 23.4%.
This amount already includes the interim dividend paid by the Company on October 31, 2023, totaling Rp681,489,111,600 or Rp 11 per share. Thus, the remaining cash dividend to be paid to the Company's shareholders will be at least Rp 681 billion.
This dividend payout ratio of 83.0% is significantly above the Company's general policy and dividend commitment, which is a minimum of 50% of the Company's net profit. The decision on dividend distribution has certainly considered the budget for working capital needs, the budget for the share buyback program, the capital expenditure budget (both routine capital expenditure and expansion capital expenditure allocated for the construction of the Company's third factory in Cirebon), as well as business development needs and other related matters.
AVIA's double-digit net profit growth of 17.3% in 2023 reflects the Company's ability to manage its asset quality. For information, the Company's return on asset (ROA) ratio in 2023 reached 14.7% and the Company's return on equity (ROE) ratio in the same period was recorded at 16.6%.
For information, over the past three years, AVIA has distributed dividends exceeding 80% of its annual net profit. In 2022 alone, AVIA's dividend payout ratio reached 92.9% of the total net profit for 2022.
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A Glance at PT Avia Avian Tbk
PT Avia Avian Tbk was founded in 1978 as an integrated paint manufacturing company. Known as Avian Brands. For over 4 decades, Avian Brands has brought color to the lives of millions of Indonesian families through a diverse range of products, including Sunguard All in One, Supersilk Anti Stain, and Avitex wall paints, No Drop waterproof coating paint, and Avian wood & iron paints.
Listed on the Indonesia Stock Exchange (IDX) on December 8, 2021, with the stock code (IDX: AVIA), AVIA is the largest decorative paint manufacturer and a market leader in the decorative paint and coatings industry in Indonesia based on a survey conducted by Frost & Sullivan.
Currently, AVIA holds approximately 23% market share in the decorative paint and coatings industry in Indonesia. AVIA has strong manufacturing capacity and capabilities through its manufacturing facilities in Sidoarjo and Serang. Vertical integration allows AVIA to produce raw materials internally.
AVIA's sales are divided into architectural solutions and merchandise. Architectural solutions contribute 80% of sales, and the merchandise segment contributes 20% of sales.
Since 2020, Avian Brands has operated the first research, development, and innovation center in Indonesia called Avian Innovation Center (AIC), covering an area of 5,000 square meters.
As a manifestation of Avian Brands' commitment to environmental management, occupational health and safety, and GCG (Good Corporate Governance) in accordance with international standards, Avian Brands has successfully obtained and implemented ISO 9001:2015 (Quality Management System), ISO 14001:2015 (Environmental Management System), ISO 45001:2018 (Occupational Health and Safety Management System), ISO 50001:2018 (Energy Management System), and ISO 27001:2013 (Information Security Management System).
The presence of Avian Brands aims to provide leading benefits and contribute to coloring Indonesia.
