Astra International Net Income Falls 7.1% in Q1 2025 Amid Rising Costs
Main Takeaways
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JAKARTA, investortrust.id — Indonesia’s largest conglomerate PT Astra International Tbk has reported a 7.1% decline in net income attributable to shareholders in the first quarter of 2025, as surging costs offset modest revenue growth.
The company posted Rp 6.93 trillion ($450 milllion) in net income for the three months ending March 2025, down from Rp 7.46 trillion in the same period last year. The drop came despite an increase in net revenue to Rp 83.36 trillion, up from Rp 81.20 trillion in Q1 2024.
Astra International, listed under the ticker ASII on the Indonesia Stock Exchange, attributed the erosion in profitability to rising cost of revenue, which climbed from Rp 63.62 trillion to Rp 66.30 trillion. As a result, gross profit slipped from Rp 17.58 trillion to Rp 17.06 trillion, while profit before tax fell from Rp 12.01 trillion to Rp 10.64 trillion.
Profit for the period also declined from Rp 9.75 trillion to Rp 8.55 trillion, reinforcing the broader pressure on margins across the group’s diversified businesses, which include automotive, agribusiness, financial services, and heavy equipment.
Dividend Remains Consistent Despite Profit Dip
Despite the lower earnings, Astra has proposed a final dividend of Rp 308 per share for the 2024 fiscal year. When combined with the Rp 98 interim dividend distributed in October 2024, the total dividend would amount to Rp 406 per share.
“The proposed final dividend, combined with the interim dividend, reflects a total payout ratio of 48% for the 2024 fiscal year,” Astra President Director Djony Bunarto Tjondro said in the company’s annual report released Thursday, Feb. 27, 2025.
Management emphasized that the ratio brings Astra’s dividend policy back in line with its long-term average, following higher distributions in 2022 and 2023.