Modern Group to pay $2.4m in dividends

JAKARTA (JP): Three publicly-listed companies of the Modern Group -- Modern Photo, Modernland Realty and Modern Bank -- yesterday received shareholders' approvals for their proposed dividends.

An executive of the Modern Group, Michael Haribowo, told journalists here that Modernland has allocated Rp 5.7 billion (US$2.4 million) or 25 percent of its 1995 net profits for dividends payment.

"Modern Photo will pay dividends of Rp 200 per share, totaling Rp 26 billion or 43 percent of its 1995 net profits, while Modern Bank will pay dividends of Rp 125 per share, totaling Rp 15 billion or 67 percent of its net profits," Haribowo said.

During a joint press conference yesterday, executives of the three companies explained their companies' 1995 performances and their projections for 1996.

Modern Photo expects an increase of 15 percent in its net sales and 20 percent in net profits.

"We recorded an increase of 14 percent in net sales to Rp 642 billion last year, and 23 percent in net profits to Rp 62 billion," A.F. Hasan of Modern Photo said.

"For the first quarter of this year, we already booked Rp 152 billion in net sales, 7 percent higher than that of the same period last year," Hasan said. "Our net profits stood at Rp 14 billion."

"The sales figure was actually below our expectation of a 15 percent increase. But we believe that we can reach our target for the whole year, particularly with the sales of our new product -- an advanced photo system -- which was launched in April."

Meanwhile, a director of Modern Bank, Boby Sudarso, said the bank's management projects a 20 percent increase in before-tax profits and about 45 percent in net profits.

Boby said Modern Bank's credit expansion is expected at a 30 percent level this year.

As of the end of last year, the bank's total credits reached Rp 1.3 trillion, while total funds generated from the public amounted to Rp 1.6 trillion, indicating increases of 49 percent and 58 percent respectively from the end of the previous year.

He said that Modern Bank's before-tax profits rose 19 percent to Rp 37 billion last year. Its net profits, however, slightly declined, from Rp 22.26 billion in 1994 to Rp 22.22 billion last year because of a change in the tax policy adopted by the government.

For the first quarter of this year, the bank's net profits reached Rp 11 billion.

Yahya Salim of Modernland said the company expects to book Rp 200 billion in net sales and Rp 28 billion in net profits this year.

Modernland saw a drop of 17 percent in net profits to only Rp 23 billion last year, despite an increase of 12 percent in net sales to Rp 163 billion.

Salim said that about Rp 70 billion of 1995's sales could not be booked because of a change in the company's accounting system. (alo)