Indonesia's Astra International: Net Profit, Sales & Dividend
Astra International, among the biggest diversified conglomerates in Indonesia, plans to distribute a total of IDR 6.8 trillion (approx. USD $511 million) worth of dividend for financial year 2016 to its shareholders, about 45 percent of the company's total net profit (slightly below the 50 percent payout ratio in the preceding year). Astra's 2016 dividend involves final dividend of IDR 113 per share and interim dividend of IDR 55 per share (hence total dividend of IDR 168 per share).
Prijono Sugiarto, President Director of Astra International, said the firm's final dividend proposal still requires approval in the Annual General Meeting of Shareholders that is scheduled for April 2017. Regarding Astra's full-year 2016 corporate earnings, Sugiarto said the company's performance was satisfying thanks to stable business growth.
In full-year 2016 Astra International posted IDR 15.1 trillion (approx. USD $1.1 billion) worth of net profit, up 4.8 percent (y/y) from net profit in the preceding year. Due to its presence in most sectors of the economy, Astra International is often labeled the barometer of the Indonesian economy. Hence, if the company's earnings accelerate then chances are big that the whole economy of Indonesia shows acceleration as well (or vice versa). Astra's net profit rebounded in 2016 after slipping -24.6 percent (y/y) in 2015. Similarly, Indonesia's managed to end its economic slowdown in 2016 when GDP growth accelerated to a pace of 5.02 percent (y/y). Meanwhile, the company's revenue slid 2 percent (y/y) to IDR 181.1 trillion in 2016.
In 2016 Astra International's automotive business segment, the backbone of the company, grew strongly with net income rising 23 percent (y/y) to IDR 9.2 trillion amid a 16 percent (y/y) increase in car sales (to 591,000 vehicles). Meanwhile, Astra International's market share in Indonesia's car sales market rose to 56 percent in 2016 (from 50 percent in the preceding year). Its unit Astra Otoparts, which produces car (spare) parts saw its net profit climb by 31 percent (y/y) to IDR 418 billion in 2016.
Although Astra International's motorcycle sales fell 2 percent (y/y) to 4.4 million units in full-year 2016, the company's market share grew to 74 percent.
Astra International's Financial Results:
| Subject | 2016 |
2015 | Change (y/y) |
| Net Revenue | 181,084 | 184,196 | -2% |
| Net Income | 15,156 | 14,464 | +5% |
in billion of IDR rupiah
Source: Astra International
Astra's heavy equipment and mining business segment performed poorly in 2016 due to the negative conditions in the mining sector, low coal prices (in the first half of 2016), and foreign exchange losses.
Also the banking business segment of Astra International was problematic in 2016, particularly due to the poor performance of Bank Permata. Astra's net profit from banking fell 78 percent (y/y) to IDR 789 billion. Bank Permata booked IDR 6.5 trillion in net losses in 2016 particularly due to higher non-performing loans.
The strengthening crude palm oil (CPO) price, on the other hand, was the main reason why plantation unit Astra Agro Lestari saw its net income rise 224 percent (y/y) to IDR 2 trillion. The CPO price rose 41.5 percent in full-year 2016.
About Astra International's performance in 2017 Sugiarto said he is optimistic about the improvement in economic conditions, and especially the strengthening coal price.
Astra International's Net Income per Business Line:
| Subject | 2016 |
2015 | Change (y/y) |
| Automotive | 9,166 | 7,464 | +23% |
| Financial Services | 789 | 3,555 | -78% |
| Heavy Equipment & Mining | 3,032 | 2,342 | +30% |
| Agribusiness | 1,599 | 493 | +224% |
| Infrastructure & Logistics | 263 | 195 | +35% |
| Information Technology | 196 | 204 | -4% |
| Property | 111 | 211 | -47% |
| Attributable Net Income | 15,156 | 14,464 | +5% |
in billion of IDR rupiah
Source: Astra International
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