Profit Of Cigarette Producers Sampoerna Drops 22 Percent In The First Quarter Of 2021 To IDR 2.58 Trillion

Illustration. (Photo: Unsplash)

JAKARTA - Cigarette producer, PT Hanjaya Mandala Sampoerna Tbk (HM Sampoerna) recorded a decrease in revenue and net profit in the first quarter of 2021. This was due to eroded sales volume and an increase in tobacco excise rates.

Quoted from the company's financial report coded HMSP shares on the information disclosure page of the Indonesia Stock Exchange (IDX), Thursday, April 29, the company recorded net sales of IDR 23.55 trillion. That figure slightly decreased by 0.54 percent compared to the same period last year amounting to IDR 23.86 trillion.

The cost of goods sold also increased 3.92 percent year on year (yoy) to IDR 18.52 trillion. As a result, the current year's profit attributable to the owner of the holding company HM Sampoerna fell 22.13 percent yoy to IDR 2.58 trillion from the same position last year of IDR 3.32 trillion.

HM Sampoerna President Director Mindaugas Trumpaitis once said that the government's decision not to increase the excise tariff for a hand-rolled cigarette (SKT) this year could help the company's performance and protect workers.

Meanwhile, the JP Morgan Sekuritas Analyst Team in their research stated that the downward trend in cigarette sales will continue until the end of the year in line with Indonesia's economy gradually recovering from the pandemic and the increase in tobacco excise rates.

According to him, HMSP has limited room for price adjustments. In addition, the sales volume was squeezed by tier 2 cigarette products.