Semen Baturaja Records Brilliant Performance, Net Profit in Q1 – 2025 Skyrockets 864%

BATURAJA – Based on data from the Indonesian Cement Association (ASI), national cement demand in Q1-2025 was recorded to have decreased by 7.4% compared to the same period last year. However, amidst the weakening national trend, the market in the Southern Sumatra (Sumbagsel) region actually showed positive growth of 2.4% compared to last year.

This relatively resilient regional market performance is one of the supporting factors for PT Semen Baturaja Tbk (SMBR) as a subsidiary of PT Semen Indonesia (Persero) Tbk (SIG), to record impressive growth throughout Q1-2025.

Throughout January to March 2025, cement sales volume reached 533,337 tons, growing 10% compared to the same period last year of 486,643 tons. Not only supported by cement sales growth, the increase was also supported by the positive performance of the product diversification line. White clay sales volume was recorded at 9,125 tons, a 104% jump compared to the same period last year of 4,468 tons.

Along with the increase in sales volume, the company’s revenue grew 22% to IDR527.82 billion from the previous IDR432.4 billion. This growth was driven by sales contributions to related parties of IDR487.11 billion, sales to third parties of IDR34.27 billion, and sales from the non-cement business segment (product diversification) which also provided an additional IDR6.42 billion.

SMBR’s financial performance also showed a significant jump, with a net profit of IDR48.96 billion or a jump of 864% compared to the same period last year of IDR5.07 billion. EBITDA also increased 62% to IDR130.08 billion, reflecting continued improvement in efficiency in the production and operational processes.

In addition to recording solid financial performance, SMBR recorded an increase in sustainability performance in Q1-2025. The reduction in Greenhouse Gas (GHG) Emissions was successfully suppressed to 548.42 kgCO₂/ton cement eq, down from 594.51 kgCO₂/ton cement eq in the same period last year. This decrease was driven by the optimization of the use of alternative fuels or Alternative Fuel and Raw Material (AFR) which increased by 82% to 5,273 tons from the previous 2,897 tons. Along with that, the Thermal Substitution Rate (TSR) also increased from 1.84% to 3.16%.

This achievement is the result of the company’s success in implementing a development strategy that is in line with the direction of the parent company SIG. The application of the principles of Manufacturing Excellence, Cost Leadership Initiatives, and Sustainable Business are key factors in maintaining SMBR’s performance to remain solid, growing, and sustainable amidst industry challenges.

“The growth we achieved at the beginning of this year is the result of our focus on implementing strategies that are in line with the direction of the parent company, which not only strengthens the company’s competitiveness but also creates long-term value,” said Hari Liandu, Vice President of Corporate Secretary of SMBR.

Hari also added that SMBR will continue to maintain this momentum by encouraging innovation, operational efficiency, and strengthening collaboration with the parent company SIG to face existing challenges.

Support for this positive performance is also reflected in the increase in the company’s credit rating. Last April, PT Pemeringkat Efek Indonesia (PEFINDO) raised SMBR’s rating from idA+ (stable) to idAA– (stable). This increase is based on the audited financial report as of December 31, 2024 and reflects increasingly solid financial fundamentals, as well as SMBR’s strategic position within the SIG Group.

“With a performance trend that continues to be positive, we are optimistic that we can provide sustainable added value for all stakeholders and actively contribute to national development, especially in the Sumbagsel region,” concluded Hari. (*)