Sampoerna Q1 sales rise 11.9%; BAT ups market share

The Jakarta Post , Jakarta | Wed, 05/28/2008 12:56 PM | Business

The country's top cigarette producer PT HM Sampoerna, a local unit of U.S.-based Phillip Morris International Inc., booked a 11.9 percent rise in first quarter net sales from a year earlier to Rp 8.13 trillion (US$871 million).

"Our company performed well in the first quarter of this year due to our continuous efforts to innovate our products," HM Sampoerna president director Martin G. King told a media briefing on Tuesday.

Its sales volume rose by 5.8 percent to 17.7 billion sticks in the first quarter over the same period last year, controlling 28 percent of the total market share.

The growth in sales was attributed to a 9.1 percent increase in machine-made clove-blended cigarettes (SKM), 0.9 percent rise in hand-rolled clove-blended cigarettes (SKT) and a 13.4 percent increase of white cigarettes (SPM).

Communications director Niken Rachmad was cautious in saying that overall cigarette sales in the country would be "somewhat" affected by the government's 28.7 percent subsidized fuel price increase.

The direct impact of the fuel price rise would be customers' weakened buying power and rising production costs for companies, Niken said.

"However, HM Sampoerna will not raise its cigarette prices," she said, adding that the company had raised the selling price earlier this year after a 7 percent rise in excise tax.

In its financial report, HM Sampoerna reported that it booked a 2.8 percent increase in sales volume to 66.8 billion sticks in 2007 compared to 64.7 billion a year before, recording a slight increase in net sales value to Rp 29.79 trillion last year from Rp 29.55 trillion in 2006.

Net profit rose to Rp 3.62 trillion in 2007 from Rp 3.53 trillion the previous year.

Sampoerna produces Marlboro Mix 9, Dji Sam Soe Filter, A Mild (SKM); Sampoerna A Hijau, Dji Sam Soe (SKT); Marlboro (SPM).

Meanwhile, another publicly listed cigarette maker PT BAT Indonesia announced Tuesday its sales volume for international brands grew 59 percent in 2007 to more than two billion sticks, the highest level in five years.

"The newly launched sub-premium product Pall Mall contributed most to total international brands sales," director of corporate regulations and affairs, Lekir Amir Daud, told reporters.

Pall Mall, launched in May 2007, contributed 839 million sticks in sales to the total international brands sales in 2007.

Brands such as Dunhill and Lucky Strike also significantly contributed to sales growth. The market share of BAT products responded accordingly with 2.5 percent growth in 2007.

BAT Indonesia produces international brands such as Lucky Strike, Dunhill, Pall Mall, Ardath, Kansas and Commfill. (rff)

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