Indocement controls 29.7 percent Indonesia's cement market

Kotabaru, South Kalimantan (ANTARA) - Cement maker PT Indocement Tunggal Prakarsa Tbk had booked a total volume of sales (cement and clinker) of 14,738 thousand tons for YTD September 2024, higher by +999 thousand tons or +7.3% compared to the same period last year.

Indocement Corporate Secretary Dani Handajani said that without clinker the total volume of domestic sale was recorded 13,690 thousand tons, higher by +1,194 thousand tons or +9.6%, especially with additional volume from PT Semen Grobogan.

"This makes Indocement's domestic marketshare, referring to Indonesian Cement Association (ASI) data reached 29.7% with a market share of 37.8% in Java and 21,1% outside Java. Total export sales were 189 thousand tons," he noted in a press statement on Tuesday.

The company's net income was IDR13,320.7 billion, up +3.0 percent. The composition of bulk products increased by 31.6% compared to last year's 26.1 percent from cement supply for the construction of the new capital city as well as the acceleration of other infrastructure projects.

Meanwhile, cost of revenue increased to -IDR9,237.7 billion, +4.5 percent higher following higher sales volume.

"This results in a gross profit margin of 30.7 percent for YTD September 2024," said Corporate Finance Manager David Halim.

Higher operating expenses of +5,4 percent to -IDR2,722.0 billion came from higher sales volume and other expenses from expanded operation (Grobogan).

Other Operating expenses - net IDR19.6 billion, +115,8% higher due to foreign exchange gains in 2024 compared to forex losses last year, including several sales of scrap goods in 2024.

This resulted an operating profit margin of 10.4% and EBITDA 19.0 percent for YTD September 2024.

Financial income - net was lower by IDR70.4 billion or-201.5 percent due to interest expenses from debt for acquisition of PT Semen Grobogan. Income tax expenses - net decreased to -IDR274.1 billion or lower by -18.6 percent due to lower profits.

Based on the figures above, the current period profit for YTD September 2024 reached IDR1,055.9 billion.

The Indocement strong financial balance posted a net cash position with cash and cash equivalent of IDR2.7 trillion until September 30, 2024.

The company, one of the largest cement producer in Indonesia that produces Tiga Roda cement, Rajawali cement, Mortar Tiga Roda, and Grobogan cement, faces future challanges with optimism amidst weak purchasing power conditions still affect overall cement demand.