Indocement books 103.4 percent profit in Q1 2023

Kotabaru, South Kalimantan (ANTARA) - One of the largest cement producers PT Indocement Tunggal Prakarsa Tbk has recorded a total volume of sale (cement and clinker) of 4,459 thousand tons in the first quarter of 2023.

The sale was higher by 389 thousand tons or 9.6 percent from Q1 of 2022, including additional sales volume from Maros Plant, South Sulawesi, which was leased from PT Semen Bosowa Maros.

"Domestic cement sales volume was recorded at 4,303 thousand tons, higher by 266 thousand tons or 9.6 percent from Q1 of 2022," said Director and Corporate Secretary Antonius Marcos and Corporate Finance Manager of PT Indocement Tunggal Prakarsa Tbk David Halim through a press release received here Saturday.

Indocement also recorded an increase of 368.6 percent in export sales from 33 thousand tons to 156 thousand tons.

Its net revenue in Q1 of 2023 increased 19.3 percent to Rp4,245.7 billion from Rp3,557.7 billion in Q1 of 2022 due to increased volume and higher prices resulting from the gradual selling price increase last year.

While the cost of revenue increased by 14.3 percent from Rp2,597.3 billion to Rp2,969.8 billion as sales volume increased.

The combination of the two components led to an increase in gross profit margin from 27.0 percent in Q1 of 2022 to 30.1 percent in Q1 of 2023.

Higher operating expenses of 5.8 percent from Rp776.9 billion to Rp822.2 billion came from the effects of higher sales volume, general labor increases, and travel costs as activities returned to normal after the COVID-19 pandemic.

Conclusion of the figures, profit for the ongoing period increased 103.4 percent from Rp182.6 billion to Rp371.4 billion in Q1 2023.

The company's resilient balance sheet posted a net cash position with cash and cash equivalents being Rp4.3 trillion.

With a strong balance sheet position and no bank debt, Indocement is ready to face the challenges ahead amidst the oversupply of cement and ready to take opportunities that will bring good synergy in the future.

The 9.3 percent decline in bagged cement consumption, which accounts for 73 percent of total domestic cement consumption in Q1 has dragged overall national cement consumption down by 6.5 percent. This is contrary to the growth recovery in Q1 of 2022 of 4.9 percent.

"We anticipate this trend to recover after the Eid holiday season with the increase in public spending before the 2024 elections and the acceleration of infrastructure and commercial development, including the impact of the construction of the new capital city in Kalimantan," he said.

"We expect cement consumption growth this year to reach the range of 1 to 2 percent," he added.

Indocement is one of the largest cement producers in Indonesia producing Tiga Roda Cement and Rajawali Cement.

Indocement and its subsidiaries are engaged in several business sectors, including the manufacture and sale of cement.

Indocement and its subsidiaries are engaged in several business fields including the manufacture and sale of cement (as its core business) and ready-mix concrete, as well as aggregate and trass mining, with a total of 3,400 employees.

Indocement has 13 factories with a total annual production capacity of 25.5 million tonnes of cement. Ten factories are located in the Citeureup Factory Complex, Bogor, West Java; two factories in the Cirebon Factory, West Java; and one factory in the Tarjun Factory Complex, Kotabaru, South Kalimantan.

In 2022, Indocement signed an Asset Lease Agreement with PT Semen Bosowa Maros and PT Bosowa Corporindo. Heidelberg Materials has been Indocement's majority shareholder since 2001.