PT Semen Indonesia (SMGR) booked 4Q20 earnings of IDR1.25trn (US$87.5m), up 35 per cent YoY, bringing 2020 earnings to IDR2.8trn, a rise of 17 per cent YoY, helped by lower interest costs and tax expenses.
SMGR 2020 revenues of IDR35.2trn were down 13 per cent YoY, mainly due to lower volume and higher export sales.
SMGR reported total 2020 volumes of 38.8Mt, an eight per cent YoY drop. This was dragged down by domestic sales of 32Mt, down 13 per cent YoY, while export sales rose to 7.7Mt, up 23 per cnet YoY.
However, it was offset by lower cost of goods sold, which fell by 15 per cent YoY, after a drop in energy costs and the cross-bagging initiative. Operating expenses declined by 10 per cent YoY on lower transportation costs and removal of royalty payment in SMCB.
As a result, SMGR's EBIT margin rose to 16.1 per cent in 2020 (2019: 15.1 per cent). SMGR only booked IDR47bn of tax expenses in the 4Q20 (9M20: IDR768bn) due to a one-off adjustment in deferred tax liabilities after the government lowered the tax rate for 2020-21 from 25 to 22 per cent.
SMGR was able to reduce its total debt by IDR5.1trn in 2020, which resulted in a faster-than-expected drop in 2020 interest costs to IDR2.3trn (2019: IDR3.2trn).
Meanwhile, Solusi Bangun Indonesia (97 per cent owned by SMGR) reported 2020 earnings of IDR651bn, up 30 per cent YoY.
