Unilever to provide 'huge' dividend

Publicly listed PT Unilever Indonesia, a local unit of consumer goods giant Unilever NV, has decided to allocate all of its 2003 net profit as a dividend for shareholders to commemorate its 70th anniversary of operations.

The company said dividend payment for this year would total Rp 1.53 trillion (US$162 million), or Rp 200 per share -- 18 percent higher than last year's Rp 1.3 trillion net profit.

"The massive dividend payment of up to 118 percent of our net profit is to mark our 70 years of operation in this country," said newly appointed Unilever president director Maurits Lalisang on Wednesday.

Maurits said additional funds for the dividend would come from retained earnings, now at Rp 1.3 trillion.

The company will also use some of its retained earnings toward their planned 2004 capital expenditure of $140 million, which will be used mainly to increase the company's output capacity and for acquisitions.

The company, which produces the popular Pepsodent toothpaste and Rinso laundry detergent, booked higher sales of Rp 8.12 trillion last year against Rp 7.01 trillion in 2002, and an operating profit of Rp 1.74 trillion, up from Rp 1.32 trillion.

Unilever expects to continue to enjoy strong sales this year amid strong consumer spending during the election year, as political parties are spending billions to lure supporters.

"We expect our sales growth this year to increase by 10 to 15 percent," said Maurits.

Unilever shares ended lower on Wednesday by Rp 50, closing at Rp 3,625 on the Jakarta Stock Exchange. -- JP