Surge of 3.8% in Sales
HMSP posted the growth of 3.8% in sales from IDR95.4 trillion in 2016 into IDR99 trillion in 2017. The surge in sales was mainly bolstered by the picking up selling price instead of sales volume.
It is estimated that the total cigarette sales volume in Indonesia decreased by 2.6% from 315 billion cigarettes in 2016 into 307.4 billion cigarettes in 2017. HMSP sales volume also decline by 4% from 105.5 billion cigarettes in 2016 into 101.3 billion cigarettes in 2017. It posted a larger decline in sales than markets did; therefore, its market share also declined from 33.4% in 2016 into 33.0% in 2017.
A Slight Decline of 0.7% in Profit
Although the trend of cigarette sales volume declined since 2016, HMSP succeeded to maintain the growth in sales underpinned by the upbeat selling price.
The relatively stable and low inflation in 2017 underlined HMSP’s incapability of hiking ASP topping 10% capable of offsetting hike in excise (equivalent to 57% from sales) consistently topping 10% since 2015. Accordingly, its profit slightly declined by 0.7% from IDR12.7 trillion in 2016 into IDR12.6 trillion in 2017.
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