Merah Putih Cement, Owned By Conglomerate Martua Sitorus, Raised Revenue Of IDR 8.27 Trillion And Net Profit Of IDR 221.54 Billion In 2021

Martua Sitorus conglomerate. (Photo: Doc. Semen Merah Putih)

JAKARTA - The producer of the Merah Putih brand of cement owned by the conglomerate Martua Sitorus, PT Cemindo Gemilang Tbk (CMNT) managed to record revenue growth in 2021. However, the company's net profit actually declined throughout last year.

In CMNT's financial report, quoted on Saturday, April 30, the company posted a revenue of IDR 8.27 trillion. This achievement increased by 15.64 percent from revenue in the 2020 period of IDR 7.15 trillion.

CMNT's revenue was dominated by cement sales by third parties, amounting to IDR 4.77 trillion, followed by sales of slag to third parties worth IDR 2.14 trillion, and sales of ready-mixed concrete worth IDR 499.80 billion.

Meanwhile, customers with an income value exceeding 10 percent of the total net income are to Aastar Trading Pte, Ltd worth IDR 2.45 trillion, which are sales to related parties. Sales to Aastar Trading accounted for 29.70 percent of total sales.

However, CMNT's cost of goods sold also increased as revenue grew. The cost of goods sold, for example, rose 13.33 percent to IDR 6.15 trillion.

One component of the expense that increased significantly was the use of raw materials, which rose 55.82 percent to IDR 2.36 trillion from the previous IDR 1.52 trillion.

Selling and distribution expenses also rose 20.60 percent to IDR 658.54 billion, and general and administrative expenses rose to IDR 364.36 billion from the previous IDR 360.90 billion.

CMNT also posted a decrease in other income of up to 94.17 percent from IDR 289.73 billion to IDR 16.87 billion, mainly due to reduced net foreign exchange gains.

The increase in expenses that exceeds the increase in revenue has eroded CMNT's net profit. CMNT posted a net profit of IDR221.54 billion, a decrease of 52.9 percent from the realization of net profit in 2020 which reached IDR 471.34 billion.