GIS Recorded Profit Of IDR 472 Billion In The First Quarter Of 2024 Amid Contractions For Domestic Cement Demand

Photo: Doc. SIG

JAKARTA - PT Semen Indonesia (Persero) Tbk (SIG) reported consolidated financial performance in the first quarter of 2024 with the following summary:

The sales volume of 9.18 million tons of Revenue was recorded at IDR 8.38 trillion. The cost of revenue was recorded at IDR 6.17 trillion. The EBITDA was recorded at IDR 1.73 trillion. The profit for the period attributable to owners of the parent entity was recorded at IDR 472 billion.

SIG's Corporate Secretary, Vita Mahreyni, said the domestic cement industry contracted in the first quarter of 2024, especially the cement bag segment (retail) which was continous to around 70 percent of the total GIS revenue. This condition has an impact on decreasing sales volume and GIS revenue. On the other hand, SIG has succeeded in increasing sales volume in the bulk segment (projects and business to business) and exports.

However, GIS was able to maintain profitability through various cost management and operational excellence programs, so that the cost of revenue was recorded to fall 4.9 percent yoy and operating expenses were recorded at 4.3 percent lower than last year. In addition to cost efficiency initiatives, GIS also focuses on managing cash flow so that liquidity and solvability conditions can be maintained.

These efforts support SIG's ability to minimize the impact of contraction in cement demand, so that GIS can maintain the EBITDA margin of 20.7 percent and record a net profit attributable to owners of the parent entity of IDR 472 billion in the first quarter of 2024," said Vita Mahreyni.

In the future, Vita Mahreyni said, GIS is optimistic that the domestic cement industry still has good prospects. This was driven by demand for cement for property and housing development following the national housing development backlog which reached 12.75 million units, and the massive infrastructure development by the government, including the development of the capital city of the archipelago (IKN) in East Kalimantan which will help utilize domestic cement industry capacity.

Currently, GIS contributes by supplying 3,000 - 4,000 tons of building materials per day for IKN development. From December 2022 to February 2024, GIS has supplied 400 thousand tons of building materials from facilities in Balikpapan and Samarinda for various work packages, such as the State Palace, the Presidential Office, and Ceremony Fields located in the Central Government Core Area (KIPP), to the IKN Section 3A Toll Road (Karangjoang-KKT Kariagau), Section 3B (KKT Kariagau-Simpang Tempadung), and Section 5A (Midang Tempadung-Jang Bridge. Balang Island). SIG products are also used for KIPP supporting infrastructure, namely Intake Sepaku and Sepaku Dam.

To seize opportunities for building materials demand in Subang, West Java, GIS through its business unit, PT Solusi Bangun Beton (SBB), just inaugurated a ready-mixed batching plant in the Intipaya Subang Industri Area, West Java, last March. The inauguration of the Batching Plant Subang is an effort to expand the ready-to-use concrete product network or ready-mixed concrete and support for the government in infrastructure development in Subang and surrounding areas.

The presence of the Batching Plant Subang further strengthens the position of GIS and fills the ready-to-use concrete market in Subang and its surroundings. To date, GIS has had 59 active batching plants spread throughout Indonesia supported by quality and environmentally friendly raw materials, using the latest technology, and various concrete solutions to be innovative to meet sustainable development needs.

"SIG continues to strive to create opportunities through the development of innovative product and service diversification to maintain market leadership. With the support of extensive production facilities and distribution networks throughout Indonesia, GIS is always ready to support development in Indonesia," said Vita Mahreyni.