Friday, 14 Augst 2020 | 08:04 WIB

SIG Obtains Cement Sales Growth of 28.5 Percent to 42.6 Million Tons in 2019

The management of PT Semen Indonesia (Persero) Tbk (IDX:SMGR) or Semen Indonesia Group (SIG) (special)

JAKARTA, NETRALNEWS.COM - PT Semen Indonesia (Persero) Tbk (IDX:SMGR) or Semen Indonesia Group (SIG), has obtained total domestic and export sales volume of 42.6 million tons in 2019. The figure includes sales from Thang Long Cement (TLCC) Vietnam.

On a consolidated basis, the company's cement sales volume for 2019 rose 28.5%, as compared to 33.2 tons the previous year.

Domestic sales of GIS in 2019 in Indonesia increased 32.5% to 36.3 million tons, even though demand in the domestic cement market only grew 0.3%. Its regional sales, namely sales from Vietnam and exports, grew 9.1% from the previous year to 6.3 million tons.

Semen Indonesia's revenus for 2019 increased 31.5% to IDR40.386 trillion, as compared to IDR30.668 trillion in 2018.

However, the Cost of Revenue was recorded at IDR27,654 trillion, up 29.5% compared to the same period in 2018 of IDR21,357 trillion. EBITDA was recorded at IDR8.7 trillion, up 32.3% from IDR6.6 trillion in 2018.

Hendro Prio Santoso, President Director of SIG, said the company was able to maintain performance by obtaining EBITDA margin of 21.5%, an increase of 0.1% from the previous year.

"The growth of EBITDA Margin is derived from various strategic initiatives undertaken by the Company, starting from the integration of Solusi Bangun Indonesia (SBI), optimizing strategic functions in the marketing, supply chain, procurement, and various cost transformation steps taken by the company," he said.

Semen Indonesia recorded profit attributable to owners of the parent entity (net profit) of IDR2,392 trillion for the 2019 financial year, down 23.2% compared to the same period in 2018. Basic earnings per share were IDR403 or down 22.3% compared to IDR519 per share in 2018.

Hendi said the decline in net profit was due to an increase in financial burden in the acquisition process of PT Holcim Indonesia Tbk, which has now been renamed PT Solusi Bangun Indonesia or SBI.

He also revealed that the company has taken various steps to improve financial cost efficiency, including by making payments or repaying loans worth to IDR1.4 trillion in 2019.

In addition, Semen Indonesia also refinanced its loans in 2019 to obtain a more competitive interest rate. This step is expected to reduce the company's financial burden.