Double-Digit Growth in Sales
GGRM’s sales buoyed 15.5% from IDR21.2 trillion in 3Q17 to IDR24.5 trillion in 3Q18 thanks to the machine-made clove cigarette (SKM) segment—contributing 91% to the total sales—posting the surge of 16% in sales from IDR19.1 trillion in 3Q17 to IDR22.2 trillion in 3Q18.

Slowdown Margin in 3Q18
The net profit slightly snapped lower 3.8% from IDR2.29 trillion in 3Q17 to IDR2.2 trillion in 3Q18, albeit the double-digit growth in sales. The slowdown was attributable to the gross margin contraction from 22% in 3Q17 to 19.2% in 3Q18. Of note, the decline in gross margin was driven by the soaring ratio of excise expenses to sales from 54% in 3Q17 to 69% in 3Q18.


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