PT Malindo Feedmill TBK (MAIN), a stock exchange listed Indonesian feed producer and seller of commercial day old chicks (DOC), has held it's Annual General Meeting of Shareholders (AGM). The main focus at the AGM was the announcement of the company's plan to distribute a dividend of Rp 41.05 billion ($4.4 million USD), or 20% of net income for last year. This cash dividend is the equivalent to Rp 25 per share.
The dividend distribution is expected to be made by the company sometime between July or August. "We choose between July or August 2012, because in that period we would have our greatest performance," explained Mr. Tan Lai Kai, Commissioner of PT Malindo Feedmill TBK.
The company posted net sales of Rp 2.63 trillion in 2011, up 29 percent compared to sales in 2010 which amounted to RP 2.036 trillion. Sales of animal feed were the biggest contributor with Rp 591 billion of sales, an increase of 51% over the previous year. This was attributed to the opening of their new feed mill in Cikande, West Java in February 2011, which helped increased sales in feed significantly with the volume of sales increasing by about 36% from a year earlier.
While PT Malindo Feedmill TBK is by no means the largest feed producer in Indonesia, they remain one of the most efficient utilising, and have the highest net income out of the largest 5 feed millers in the country.
The company operates 3 feed mills manufacturing broiler breeder feed, brolier layer feed, and layer breeder feed. Its feed mills include; a 150,000 MT pa feed mill located in Cakung, Jakarta; a 300,000 MT pa feed mill in Gresik, East Java; and the newly constructed Cikande feed mill which has a production capacity of 450,000 MT pa located in Cikande, Banten. The total feed production capacity of the company is currently 900,000 Metric Tonnes of feed a year.
The outlook for the future was positive in the AGM. Looking forward to the future, the company stated "We estimate that the need for animal feed products (in Indonesia) will continue to increase, especially poultry feed, along with the continued growth of demand for poultry."
PT Malindo Feedmill TBK announced that it had several expansion plans, including expansion of feed mill commencement in other areas of Indonesia, such as Central Java and Kalimantan. Other expansion plans included increased marketing and distribution to eastern Indonesia, a further food processing factory (expected to be in operation by the end of the year), and the expansion of their breeder and broiler farms.
Indonesia's animal feed consumption is constantly increasing every year, and a consumption growth of 6.4% CAGR was seen in the period 2005-2010. The Animal Feed Manufacturers Association of Indonesia (APPI) estimated that in 2011 the country's animal feed consumption would reach 10.3 million tonnes, while consumption of animal feed in 2010 was 9.7 million tonnes, 6.2% year on year growth.
