economy

ASSA Is Distributing Cash Dividends Of Rp 73.8 Billion Or Rp 20 Per Share

PT Adi Sarana Armada Tbk (ASSA), a company with an integrated ecosystem for people and goods mobility, has distributed dividends to its shareholders amounting to Rp73.8 billion or Rp20 per share with a payout ratio of 71% from ASSA's net profit in 2023. This dividend distribution was approved at the General Meeting of Shareholders (GMS) on Wednesday, June 26, 2024 in Jakarta.

Entering 2024, ASSA continues to develop its integrated ecosystem to become a leading one-stop solution company for logistics services in Indonesia. As of the end of March 2024, ASSA has 18 branches and 22 outlets with a fleet of around 30 thousand vehicles.

"We will continue to strive in building a sustainable business ecosystem by providing an integrated system ranging from vehicle procurement for rental services, logistics solutions, to vehicle sales. This step is expected to enhance ASSA's economies of scale," said Prodjo Sunarjanto, CEO of ASSA.

The company is optimistic that its business will continue to grow along with the increasing economic activities, which will drive the demand for logistics. Therefore, ASSA is currently focusing on the B2B segment, specifically first-mile and mid-mile logistics. First mile refers to the delivery from the warehouse to the distribution center, while mid-mile refers to the delivery from the distribution center to the store. In this regard, the company provides various logistics solutions such as trucking services, warehouse management, and other customized services (cold chain logistics, cold storage, etc.).

"Considering that the growth potential in the transportation sector in Indonesia is still open and vast, the company targets a business growth of up to 10%, or at least in line with the annual economic growth in Indonesia," added Prodjo.

In addition, as a commitment to continuously enhance its logistics ecosystem, ASSA has also obtained halal certification since November 2023. ASSA was also invited to attend the BSI International Expo 2024 on June 21, 2024, demonstrating its commitment to contribute to the development of the halal ecosystem in Indonesia.

To support the company's efforts to become a One Stop Logistics Solution company, ASSA is currently developing its fourth business pillar by building a food supply chain for items such as FMCG products, staple foods, fruits & vegetables, eggs, poultry, and seafood.

To support this business strategy, the company has allocated a CAPEX of Rp 1.3-1.5 trillion in 2024, which will mainly be used for fleet renewal. In the first quarter of 2024, the company successfully recorded a net profit of Rp 71 billion, a growth of 37% YoY.

In addition to fleet renewal, the funds will also be used to finance various other expansion activities, including expanding operations in several ASSA Rent branch offices to accommodate the high demand for vehicle rentals.

Tag: ASSA PT Adi Sarana Armada Tbk