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Soaring finance costs lower Semen Indonesia’s profit in January-September
The company's spokesperson said last week that it would work with its subsidiaries to increase profitability.
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A factory of state-owned cement manufacturer PT Semen Indonesia in Rembang, Central Java
(tribunjateng/Yayan Isro Roziki)
C
ement producer PT Semen Indonesia saw a significant profit decline in the first nine months of the year on the back of surging finance costs.
Although Semen Indonesia still pocketed Rp 1.3 trillion (US$92.85 million) in net profit from January to September, the profit was a 38 percent decrease from that gained in the same period in 2018 due to increasing finance costs, which jumped 235.33 percent year-on-year (yoy).
According to the company’s financial report released on Oct. 31, its total revenue increased 31 percent yoy to Rp 28.12 trillion in the nine-month period thanks to additional contributions from its newly-acquired subsidiary, publicly listed PT Solusi Bangun Indonesia (SBI), which joined the group in February.
Domestic cement sales as of September outside of SBI, meanwhile, declined 4.9 percent from the same period last year, as national cement demand slumped 2 percent yoy. However, export sales volume rose 7 percent to 2.9 million tons during the period.
The sharp increase in finance costs reduced the company’s profitability.
Company spokesperson Sigit Wahono said on Thursday last week that it would work with its subsidiaries to increase profitability.
“We will promote cost efficiency through various cost transformations and develop the building material business that has added value to our company,” he said in a statement.
