Semen Indonesia Group (SIG) recorded lower sales volume inline with lower domestic demand in 2022. Domestic cement sales volume weakened by 3.4 per cent YoY to 63.03Mt led by a contraction in bag sales volume of 8.7 per cent YoY due to price increases, while the bulk market maintained growth of 14.5 per cent.
SIG’s total sales contracted by 12.9 per cent YoY to 36.92Mt. Domestic cement sales declined 7.2 per cent YoY to 31.6Mt in 2022, while regional sales fell by 36.4 per cent YoY to 5.28Mt.
For January – February 2023 cement sales, the domestic market was still under pressure with volumes declining by 2.6 per cent YoY to 9.39Mt, due to prolonged heavy rains in February, while the bag market weakened by 6.5 per cent YoY and the bulk market grew by 10.2 per cent.
SIG’s cement sales in January – February 2023 decreased slightly by 0.2 per cent. Domestic sales volume contracted by 3.9 per cent YoY to 4.83Mt while export sales increased by 33.5 per cent YoY to 1.07Mt. Inline with the decline in sales volume, SIG achieved revenues of IDR36.38trn (US$2.4bn), down slightly by 0.9 per cent YoY.
Domestic demand is expected to recover with ongoing infrastructure projects in 2H23 while Lebaran and fasting in March – April will lead to temporarily lower demand. Top line growth of 15 per cent YoY is estimated to IDR38.8trn in 2023.
4Q22 results
SMGR reported net income of IDR715bn, a rise of eight per cent YoY but down 13 per cent QoQ in the 4Q22 due to a higher average selling price and higher fuel and distribution costs. This resulted in a lower net profit margin compared to 3Q22 of 6.4 per cent. For 2022FY, SIG’s net profit increased 15.5 per cent YoY to IDR2.36trn while the NPM increased to 6.5 per cent.
SIG managed to lower operating expenses by 12 per cent YoY in the 4Q22 mainly from lower transportation, promotion and labour costs. Profit after tax increased slightly due to lower tax expenses in 4Q22.
