SIG sees revenue fall 2% in 1H22

In the first half of 2022, Semen Indonesia Group (SIG) has reported revenue of IDR15,876bn (US$1064m), down 2.1 per cent on the same period last year. The decline was mainly driven by lower sales volumes with domestic sales volumes down 2.6 per cent YoY to 13.9Mt on the back of the Lebaran holidays following a two-year gap during the pandemic, along with a shift in people’s spending priorities away from property and renovation work. Regional sales volumes fell 39.2 per cent YoY to 2.9Mt, taking total sales volumes for the 1H22 to 16.9Mt, a 12 per cent contraction YoY. However, the lower sales volumes were somewhat offset by price adjustments in April and June 2022, resulting in a 1.8 per cent YoY increase in domestic revenue.

The group recorded a flat cost of goods sold at IDR11,466bn despite higher fuel costs. Fuel and electricity costs increased by 15 per cent, mainly due to a 50 per cent YoY rise in coal prices. However, this increase was lower than the average increase in coal prices of 83 per cent in the 1H22 as the company had secured its coal supply at the domestic market obligation (DMO) cap price.

Despite the challenges of volume contraction and coal price increases, due to the improved selling price, SIG was able to record improved net profit during the 1H22. EBITDA remained flat at IDR3534bn, while the EBITDA margin improved 0.4 per cent to 22.3 per cent. Net profit for the year attributable to owners of the parent entity grew by 4.4 per cent YoY to IDR829bn, while the net profit margin increased by 0.3 per cent to 5.2 per cent compared to the same period a year earlier.