Increment of 8.4% in HMSP Sales
HMSP’s sales increased by 8.4% from IDR24 trillion in the 2Q17 to IDR26 trillion in the 2Q18. The growth in sales was backed by machine-made clove cigarettes (SKM) segment posted the growth of 14.5% in sales from IDR15.9 trillion in the 2Q17 to IDR18.3 trillion in the 2Q18. On the other hand, white cigarettes (SPM) posted the decline of 16% in sales from IDR3.2 trillion in the 2Q17 to IDR2.7 trillion in the 2Q18 whittled away HMSP’s sales. The paradox of incline in sales by SKM segment vs. decline in sales by SPM segment aligned with the Indonesian smokers’ preference for SKM-typed cigarettes.
Growth of 12% in 2Q18’s Net Profit
HMSP’s net profit grew by 12% from IDR2.75 trillion in the 2Q17 to IDR3.0 trillion in the 2Q18. However, on the semester basis, its net profit only nudged up 1% from IDR6.04 trillion in the 1H17 to IDR6.1 trillion in the 1H18. The light growth was attributable to the decrease in EBITDA margin from 17.2% in the 1H17 to 16.4% in the 1H18. We estimate that its revenue exclude excise tax was constrained by the hike in the excise tax on cigarettes topping inflation.
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