Sampoerna's first half profit down 5.3 percent

Publicly listed cigarette maker PT HM Sampoerna on Thursday announced that its net profit in the first half of 2008 fell 5.3 percent to Rp 1.965 trillion (about US$215.744 million) from Rp 2.075 trillion in the same period last year.

A rise in operating expenses to Rp 1.619 trillion in the first semester of 2008 from Rp 1.307 trillion in the same period last year was mainly responsible for the drop in first-semester net profit, according to the company's midyear financial report.

Consequently, operating profit fell to Rp 3.057 trillion from Rp 3.065 trillion while at the same time miscellaneous expenses more than tripled to Rp 186.91 billion from Rp 58.39 billion due in part to pension programs.

Net sales rose 15.6 percent to Rp 16.697 trillion in the first half of 2008 from Rp 14.440 trillion in the same period last year, while sale expenses rose to Rp 12.020 trillion from Rp 10.067 trillion.

The company's total assets were recorded at Rp 14.618 trillion as per June 30, 2008 compared with Rp 14.742 trillion previously.(**)