Jakarta, CNBC Indonesia – Cigarette issuer, PT Hanjaya Mandala Sampoerna Tbk (HMSP) stated that the company’s performance during the first half of this year was still under pressure due to the Covid-19 pandemic.
In addition, the policy to increase cigarette excise rates which took effect this year also led to a double digit decline in HMSP sales volume.
Sampoerna’s President Director, Mindaugas Trumpaitis, said that Sampoerna will remain vigilant about the various impacts of the global pandemic by continuing to adapt.
“Sampoerna realizes that the Covid-19 pandemic is a challenge that has a direct impact on both the public and the Indonesian business world,” he said, in an online public expose, Friday (18/9/2020).
Furthermore, Mindaugas explained, for the cigarette industry, there was an increase in excise rates by an average of 24% and a retail selling price of 46% in effect in 2020. These two things had a significant impact on the performance of this industry which had caused a decrease in the company’s sales volume.
In the first semester of 2020, industrial volume decreased by 15%, excluding the impact of the estimated trade inventory movements, this decrease was due to a decrease in people’s purchasing power.
Inevitably, Sampoerna faced challenges during the peak of the pandemic in the second quarter of 2020.
As for the matter of tobacco excise in 2015, it increased by 10%, then in 2016 it was 14%, and in 2017 it was 10%. In 2018 the excise tax also increased by 10%, while in 2019 there was no increase, and in 2020 it increased 23%.
In terms of performance, up to the first 6 months of this year, HMSP’s total market share decreased by 3.1% to 29.3% while shipment volume was 38.5 billion sticks, a decrease of 18.2%.
In semester I-2020, ethis Philip Morris-controlled cigarette partner recorded a decrease in net income year on year (yoy). Net profit fell 28% to Rp 4.89 trillion compared to the same period the previous year of Rp 6.77 trillion.
For comparison, in January-March, HMSP still experienced an increase in net profit of 1.09% year on year. The company’s net profit edged up to Rp 3.32 trillion from Rp 3.28 trillion in the same period last year.
Data shows that the correction in net profit in the first 6 months of this year occurred amid a decrease in HMSP’s net income, which fell 12% to Rp 44.73 trillion, from the same period the previous year of Rp 50.72 trillion.
(bag bag)
– .
