Gudang Garam & new management

With the acquisition of Bentoel by Britih American Tobacco (BAT), the rumor about Gudang Garam as acquisition target might disappear for a while. Other than that, the second largest cigarette producer is regrouped after Rachman Halim passed away. Shareholders meeting in Kediri, East Java, on Saturday decided to name Juni Setiawati Wonowidjojo, sister of the late Rachman Halim, as the new president commissioner. Interestingly, four independent commissioners have been appointed. They are Yudiono Muktiwidjojo, Frank Willem van Gelder, Hadi Soetirto, and Lucas Mulia Suhardja. Suhardja is the new name in the board of commissioners.

Susilo Wonowidjojo, Halim's younger brother who is also founder and owner of Makin Group plantation giant, is appointed chief executive officer (CEO) with six directors. They are Heru Budiman, Edijanto, Buntoro Turutan, Fajar Sumero, Herry Susianto, and Buana Susilo.

Susilo replaced Djajusman Surjowijono who resigned in February 2009. Susilo was vice president director. There were speculations about internal frictions about the future of Gudang Garam, especially since Susilo invested significantly in Makin Group.

Gudang Garam booked net profit of Rp1.88 trillion last year, increased 30% from the previous year on stronger sales revenue (+20.44%) at Rp30.25 trillion or about US$3 billion. The company reported net profit of Rp780 billion in the first quarter 2009, surged 132% from Q1 2008 on improved operating margin. Gudang Garam's operating profit jumped from Rp614 billion to Rp1.19 trillion in Q1 2009. The company has market capitalization of US$2.3 billion as of June 19, 2009, tripled from less than US$700 million in October 2008. The share price has surged from Rp3500 in late October 2008 to Rp12,300 last Friday.

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