Distributor Tigaraksa reports lower profit

JAKARTA (JP): Publicly listed consumer and household goods distributor PT Tigaraksa Satria reported on Thursday an 85 percent drop in its 1999 net profit to Rp 30.4 billion (US$3.8 million) from Rp 204 billion ($25.5 million) in 1998.

The 1998 net profit however included income of Rp 194.5 billion ($24.3 million) from the sales of Tigaraksa's shares in formulated milk company PT Sari Husada.

Excluding the share sales, 1998's net profit would have been Rp 9.4 billion, the company said in its annual report.

Tigaraksa sold its shares in Sari Husada two years ago to cover its $43 million foreign debt and working capital loans of Rp 31 billion.

Tigaraksa's annual shareholders meeting on Thursday agreed on a final dividend of Rp 300 per share, which was already paid in the interim in two installments.

The dividend payment represents 86 percent of the net profit.

The company's shares on the Jakarta Stock Exchange closed at Rp 3,400 on Thursday.

Total consolidated company sales rose to Rp 921.5 billion ($115.2 million) in 1999 from Rp 730.3 billion in 1998 due to higher sales volume, selling prices and product variety.

The company was entrusted last year to distribute products of formulated milk producer PT Nutricia Indonesia Sejahtera and jam producer PT Pido, which helped contribute to the company's sales.

Other brand names handled by the company include milk products from Sari Husada and Wyeth Ayerst, CIP canned foods, Knorr products, Mazola cooking oil and Skippy & Bestfood products. The company also distributes 3M products and is involved in direct selling of educational products.

Tigaraksa director of finance Fauzy said the company expected 20 percent higher sales and net income for this year.

Fauzy said sales in the first four months of 2000 reached Rp 300 billion ($37.5 million).

Beginning last month, Tigaraksa began distribution of "2 Tang" tea and teabags for PT Duta Serpack Inti.

Fauzy said the company also planned to acquire a company in the consumer and household goods sector this year as part of its expansion program.

Without saying the name of the company or the amount that it would have to invest, he said Tigaraksa would not need to issue rights shares to acquire the company.

Tigaraksa Satria was founded in 1987 as a subsidiary of PT Tigaraksa. It holds majority stakes in PT Tira Fashion (production, marketing and distributing of garments), PT Dunia Ilmu Satria Linguaphone (education material distributor), PT Tira Satria Properti (warehouse facility and distribution center) and PT Inti Karya Agrosatria (mushroom and babycorn processing). (10)