Net Income Growth in Quarter I/2024 Reaches IDR 406.5 Billion, Semen Baturaja Plans to Expand Business Activities

PALEMBANG – In the midst of a contraction in domestic cement demand and global geopolitical dynamics, PT Semen Baturaja Tbk (SMBR) as a subsidiary of PT Semen Indonesia (Persero) Tbk (SIG) managed to record net income of IDR 406.5 billion in the first quarter of 2024.

SMBR Vice President of Corporate Secretary, Hari Liandu, said that net income during the first quarter of 2024 increased 6% compared to the net income for the first quarter of 2023 of IDR 383.2 billion. This net income growth was driven by an increase in cement sales volume which reached 7%, or 486,643 tons, compared to the record for the same period last year.

“This growth is thanks to the synergy of market and price management carried out with SIG as the parent company, helping SMBR maintain profitability. “Revenue from the derivative product business, namely white clay, recorded sales of IDR 3 billion,” said Hari.

However, the increase in fuel prices amidst global geopolitics triggered an increase in the Company’s cost of revenue, especially in production and distribution costs. In the midst of these challenges, the Company posted a Profit for the Period of IDR 5.07 billion.

Looking ahead, Hari Liandu said that SMBR remains optimistic that it can achieve solid company performance growth. Synergy with SIG as the parent company also provides encouragement for the company in managing markets and prices which contributes directly to improving company performance.

In synergy with SIG, SMBR also contributed to the National Strategic Project (PSN) by supplying cement for the construction of the Betung – Jambi Toll Road, part of the Trans Sumatra Toll Road section which connects South Sumatra and Jambi Provinces.

“The construction of this toll road will improve the economic sector and facilitate access and connectivity between the two provinces and maintain SMBR’s strategic role in National Infrastructure Development,” he said.

Furthermore, SMBR has carried out comprehensive studies and studies related to additional business activities, including analysis of market feasibility, technical feasibility, business pattern feasibility, management model feasibility, business and environmental risk aspects, and financial feasibility.

The business development plan to improve long-term performance and profitability will be one of the company’s agendas to obtain shareholder approval at the Annual General Meeting of Shareholders (AGMS) which will be held on 29 May 2024.

“We are optimistic about achieving performance targets in line with market developments. SMBR continues to strengthen synergies with SIG and establish other strategic partnerships that have an impact on improving company performance, ensuring efficient operations, providing added value, and increasing collaboration with stakeholders in order to realize sustainable development, ” stressed Hari Liandu. (*)