Saratoga Delivers Strong Results in 2019, Driven by the Performance of the Diversified Investment Portfolio
Jakarta, March 16, 2020 – PT Saratoga Investama Sedaya Tbk. (Saratoga, ticker code: SRTG) posted a net profit of Rp 7.3 trillion in 2019. The significant increase of the net profit was driven by an increase in investment value and dividend income of Saratoga’s investee companies. During this period the Net Asset Value of Saratoga’s portfolio reached Rp 22.85 trillion, up 44.9 percent, from Rp 15.77 trillion in 2018.
In 2019, investment in shares and other equity securities recorded a net profit of Rp 6.2 trillion. This was mainly driven by an increase in mark-to-market share prices of PT. Tower Bersama Infrastructure Tbk. (ticker code: TBIG), PT Adaro Energy Tbk. (ticker code: ADRO) and PT Merdeka Copper Gold Tbk. (ticker code: MDKA).
Saratoga also managed to record a dividend income of Rp 1.99 trillion, an increase of 121.5 percent from 2018 of Rp 900 billion. The dividend income is the highest since Saratoga became a publicly listed company. The dividend income is attributable to PT Tower Bersama Infrastructure Tbk, PT Adaro Energy Tbk and largely PT Mitra Pinasthika Mustika Tbk (ticker code: MPMX).
Saratoga’s President Director, Michael Soeryadjaya, explained, “We are thankful for our achievements in 2019. The strong performance of the investee companies was supported by the solid business fundamentals. As a shareholder to our existing investee companies, our job is to continue to engage and support them in reaching their maximum potential. In addition, as an active investment company, Saratoga believes in the long-term potential of the three main sectors: natural resources, infrastructure and consumer and will continue to actively invest in these areas as we always have.”
In terms of the business outlook in 2020, Michael mentioned, “In the midst of various global and domestic challenges, Saratoga will continue to carry out active investment strategies in a disciplined, measurable and prudent manner. We believe that with Saratoga’s experience and expertise, the company’s investment value will continue to see optimal growth”.
Selective Investee Company Performance Highlights
PT Merdeka Copper Gold Tbk (ticker code: MDKA) experienced rapid growth as a copper and gold mining company in 2019. Gold production grew 33.2 percent from 167,506 ounces in 2018 to 223,045 ounces in 2019. The porphyry exploration project in Tujuh Bukit, MDKA’s flagship assets, continues to make great progress as the Pre-Feasibility Study advanced with further strong results from underground drilling.
PT Mulia Bosco Logistik (MBL) has expanded its capacity in both the truck and storage fleets. In 2019 MBL added an additional warehouse in Makassar, South Sulawesi and more trucks to its fleet. Saratoga has been actively working with management in financial and business development, as well as operational and risk management improvements.
PT Mitra Pinasthika Mustika Tbk (ticker code: MPMX) experienced robust growth, making the company the largest contributor to Saratoga’s dividend income in 2019. In the first quarter of 2019, Saratoga increased the ownership of MPMX by launching a voluntary tender offer. As a result, Saratoga has become the majority shareholder.
PT Famon Awal Bros Sedaya (FABS), a private hospital with international accreditation, Joint Commission International (JCI) in Indonesia, is on a mission to provide international standard health services. In 2019, the FABS launched a new hospital in North Bekasi and began operating another hospital in Sorowako, South Sulawesi. In addition, FABS continues to strengthen its operation by setting up a center of excellence, which aims to provide more maintenance, upgraded equipment, and improved technology, with the full support of Saratoga behind its operations and business expansion.
This month FABS will launch a new hospital in Karawang, West Java. This hospital will be the ninth hospital under the FABS auspices.
PT Deltomed Laboratories, one of the major players in the herbal medicine industry, has increased its production capacity and product range such as wider variants of OB Herbal, Tejahe and Kojima in 2019. In addition, it has also launched Kuldon granule, a supplement that helps reduce body heat and Herbamojo, a male-specific product with seven herbal extracts that can boost stamina, energy, immunity, and blood circulation.
About PT Saratoga Investama Sedaya, Tbk.
Founded in 1998, PT Saratoga Investama Sedaya, Tbk. (Saratoga, ticker code: SRTG) is the leading active investment company in Indonesia. Saratoga plays an active role in managing its investee companies and exploring investment opportunities in Indonesia.
Saratoga focuses on investment opportunities in the early and growth stages, as well as in special conditions with a focus on sectors that support economic growth in Indonesia such as consumer, infrastructure and natural resources.
Saratoga’s vision is to continue to be the leading active investment company and become a partner of choice for local and foreign investors seeking to participate in the dynamics of Indonesia’s economic growth.
For more information, please visit: www.saratoga-investama.com.