PT Semen Indonesia reports 2% drop in 1H revenues

PT Semen Indonesia saw a 2.1 per cent slip in total revenues to IDR15.876trn in the 1H22 when compared with the year-ago period. The company attributed the decrease mainly to lower sales volumes, which were down by 12 per cent YoY to 16.957Mt.

Domestic sales volumes were down 2.6 per cent YoY to 13.972Mt as demand contracted due to the Lebaran holidays after a two-year gap during the pandemic and a shift in spending priorities by local people. Regional sales volumes fell by 39.2 per cent YoY to 2.985Mt as the company focussed more on the domestic market due to limited coal availability. However, two price adjustments in April and June offset the lower volumes, leading to a 1.8 per cent uptick in domestic revenues.

Despite the challenges from volume contraction, hyper competition and a coal price increase, with the improved selling price, ability to secure more coal at DMO price and a 23.9 per cent decrease in finance cost, the company was able to improve its 1H net profit. EBITDA remained stable at IDR3.534trn while the EBITDA margin increased to 22.3 per cent. Net profit increased by 4.4 per cent and the corresponding margin to 5.2 per cent.