Profit From Gudang Garam, A Cigarette Producer Owned By Conglomerate Susilo Wonowidjojo, Plunged 38 Percent To IDR 1.07 Trillion Despite Earning IDR 29.29 Trillion In Revenue

Gudang Garam Building in Kediri, East Java. (Photo: Doc. Wikimedia Commons)

JAKARTA - Cigarette producer owned by conglomerate Susilo Wonowidjojo, PT Gudang Garam Tbk (GGRM) recorded an unsatisfactory performance in the first quarter of 2022. The company's net profit and revenue fell in the first three months of this year.

In Gudang Garam's financial report, quoted on Monday 9 May, the company's net profit fell 38.5 percent to Rp 1.07 trillion in the first three months of 2022. The decline in net profit was in line with the correction in GGRM's revenue.

The company's revenue fell 1.51 percent to Rp29.29 trillion in the January-March 2022 period. In the first quarter of 2021, GGRM's revenue was recorded at Rp29.74 trillion.

The company's cost of goods sold rose slightly or 0.69 percent to Rp26.01 trillion. Thus, generating a gross profit of IDR 3.27 trillion or a decrease of 16.15 percent on an annual basis.

GGRM's other income decreased by 21.91 percent to Rp. 94.11 billion from the previous Rp. 120.53 billion. Then, operating expenses increased 6.14 percent to Rp1.9 trillion.

Then, the foreign exchange gain was recorded to fall to Rp. 4.8 billion from the previous Rp. 22.55 billion. As a result, GGRM recorded an operating profit of Rp1.46 trillion, down 35.11 percent on an annual basis.

GGRM's bottom line was further depressed by the increase in interest expense to Rp93.84 billion. In the same period the previous year, GGRM's interest expense was recorded at Rp29.36 billion.

Until the end of March 2022, GGRM recorded total assets of Rp. 88.54 trillion, down from the end of December 2021 of Rp. 89.96 trillion. In detail, total liabilities fell 8.15 percent to IDR 28.17 trillion and total equity rose 1.82 percent to IDR 60.36 trillion.