Cement News

PT Semen Baturaja Persero Tbk : Semen Baturaja Revenue Grows 9%, While Demand for Cement Declines in Southern Sumatra

PALEMBANG – The national cement industry is still facing various challenges this year, such as the oversupply of national cement and the increase in fuel rates. This condition continues to spur PT Semen Baturaja (Persero) Tbk (SMBR) to be more competitive so that it can grow better by the end of 2022.

National cement demand until September 2023 in the Sumatra region decreased by 3.1%. More specifically to the SMBR market, demand for cement in the Southern Sumatra region experienced a deeper decline, reaching 4.8%.

When the condition of national cement demand declined, SMBR was able to record a 3% increase in sales volume, followed by a 9% growth in revenue.

“This growth is a turning point for management’s enthusiasm during the decline in the pandemic that this year’s target can be achieved,” said Daconi, President Director of PT Semen Baturaja (Persero) Tbk.

The increase in sales certainly had a positive impact on the company’s net profit, which jumped 260% from last year’s Rp. 16.7 billion to Rp. 43.1 billion for the period up to September 2022. The same thing was seen in the net profit margin which also experienced a decline in sales. an increase of 236% to 3.30% (yoy).

In line with the growth in sales performance, net cash flow from operations was able to record an increase of 3% compared to last year for the period up to September 2022 or Rp 283.1 billion. With a positive cash flow condition, in Quarter III the Company made an accelerated payment of part of the KI loan amounting to Rp 127 billion to reduce interest expenses.

“We took this decision after seeing the potential for interest rate hikes in the future.” he added.

SMBR continues to run efficiency programs to maintain company productivity and improve competitiveness. Management is also committed to implementing sustainability programs such as the use of waste as alternative fuels, reduction of carbon energy consumption, and biodiversity conservation programs in mining areas. {}

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