Growing 6.3%, Semen Baturaja Books Profit of IDR 129.25 Billion in 2024

BATURAJA – Amidst market conditions that are experiencing correction and oversupply pressure, PT Semen Baturaja Tbk (SMBR) as a subsidiary of PT Semen Indonesia (Persero) Tbk (SIG) has managed to record positive performance in 2024.

SMBR Vice President of Corporate Secretary Hari Liandu said that in 2024, SMBR managed to record revenue of IDR 2.09 trillion or an increase of 2.5% compared to the previous year of IDR 2.04 trillion. Although the domestic market experienced a correction, SMBR was able to increase cement sales volume by 2.23 million tons or grow 3.4% compared to the previous year of 2.16 million tons.

Revenue was supported by sales to related parties of IDR 2.00 trillion. Then also obtained from sales to third parties of IDR 62.56 billion and followed by sales of non-cement business segments or product diversification worth IDR 18.88 billion. In addition, SMBR also managed to cut sales expenses by 19.5% to IDR161.3 billion from IDR200.4 billion compared to the previous year’s period. Likewise, general and administrative expenses fell 11.9% to IDR203.3 billion from IDR230.8 billion compared to the previous year’s period. Financial expenses also experienced a significant decrease of 20% to IDR78.85 billion from IDR98.60 billion compared to the previous year’s period.

“As a result, SMBR was able to pocket a current year profit of IDR129.25 billion, this figure increased by 6.3% compared to net profit in 2023 which was IDR121.57 billion,” said Hari.

“This achievement was driven by a cost leadership strategy through operational excellence, which includes improving equipment performance, optimizing the supply chain, and efficiency across all operational lines. In addition, we also continue to develop new sources of income and strengthen synergies with SIG as the parent company,” he said.

In addition to business performance growth, SMBR continues to strengthen its commitment to sustainability. SMBR recorded a significant achievement by successfully reducing carbon emissions to 561.5 kg CO2/Ton Cement Equivalent (Cem) from the previous 577.4 kg CO2/Ton Cem in 2023. This emission reduction was supported by an increase in the use of alternative fuels (Alternative Fuel & Raw Material/AFR), which reached 9,401 tons or grew 41% compared to 2023 which was 6,661 tons, as well as a decrease in the total clinker factor to 67.2% from the previous 68.6%.

Thanks to these efforts, SMBR succeeded in achieving the 2024 Green PROPER from the Ministry of Environment and Forestry (KLHK) of the Republic of Indonesia.

More than just an environmental achievement, SMBR’s success in reducing carbon emissions and increasing energy efficiency also brings financial benefits to the company. As a recipient of the Sustainability-Linked Loan (SLL) syndicated credit facility, SMBR received incentives in the form of a potential reduction in bank loan interest expenses. In this scheme, achieving sustainability targets, such as reducing carbon emissions and increasing the use of alternative energy, contributes to lowering credit interest rates, thereby helping the company’s financial cost efficiency.

“This reduction in carbon emissions cannot be separated from SMBR’s strategy in increasing the use of alternative fuels and reducing clinker factors, which contribute significantly to energy efficiency and reducing environmental impacts. This effort is in line with SMBR’s commitment to implementing ESG, where we continue to innovate in environmentally friendly technology and encourage the use of renewable energy to support the creation of a sustainable cement industry. In addition to environmental benefits, this strategy also has a positive impact on cost efficiency and strengthening SMBR’s financial structure,” said Hari.

Hari added that currently, SMBR is planning to build a precision interlock brick production facility as part of the green cement innovation. This step is the company’s effort to present environmentally friendly products to support sustainable infrastructure development.

“With continued growth in performance and an adaptive business strategy, SMBR is optimistic that it can continue to create added value for shareholders and contribute to the national cement industry in a sustainable manner,” he concluded. (*)