Semen Baturaja’s (SMBR) Net Profit Increases from Single Digits to Double Digits in the First Half of 2025

BATURAJA – PT Semen Baturaja Tbk (SMBR), a subsidiary of PT Semen Indonesia (Persero) Tbk (SIG), recorded a significant performance surge during the first half of 2025. The company’s net profit soared to IDR 79.62 billion, a tenfold increase compared to IDR 7.32 billion in the same period last year. This increase marks SMBR’s success in emerging from single-digit sales and recording double-digit net profit growth in the first half of this year.

This net profit growth was supported by improvements in overall operational performance. Cement sales volume reached 1.13 million tons, an increase of approximately 21% compared to 928,646 tons in the previous period. This increase in sales also boosted the company’s revenue to IDR 1.09 trillion, a 31% increase from IDR 835.18 billion.

This improved performance was also reflected in a significant increase in operating profit to IDR 133.79 billion, a 168% increase compared to IDR 49.84 billion in the same period last year. The company’s EBITDA also increased 60% to IDR 236.67 billion from IDR 147.91 billion. This performance contributed to an increase in the EBITDA margin to 22% compared to 18% in the same period last year, reflecting increasingly optimal operational efficiency.

SMBR’s Vice President of Corporate Secretary, Hari Liandu, stated that this impressive achievement was the result of a combination of sound strategies and synergy with the parent company.

“This achievement is the result of the right strategy and solid synergy with SIG, which provides significant added value to our efficiency and performance,” said Hari.

He added that the company’s performance growth is inseparable from its ongoing efficiency strategy and increased market penetration in the Southern Sumatra (Sumbagsel) region, which is the company’s primary market share.

“We are seeing strong growth, especially in the South Sumatra and Sumatra region. Based on data from the Indonesian Cement Association (ASI), cement demand in this region grew by 14.2% (yoy) in the second quarter of 2025, far exceeding the national growth of 2.7% (yoy). This opens up a significant opportunity for SMBR to continue strengthening its position in the regional market,” said Hari.

Furthermore, Hari explained that the improved performance was not only due to increased demand, but also thanks to the company’s success in implementing a measurable operational strategy and synergy with its parent company, SIG.

“We are focusing on cost efficiency across all lines, from production and distribution to energy management. The use of alternative fuels, optimization of delivery routes, and integration of logistics systems are part of our efforts to reduce costs and increase margins. Furthermore, we continue to maintain service quality and optimize our sales network,” he explained.

SMBR is optimistic that this positive trend will continue in the second half of 2025. The company is also continuing to strengthen its operational strategy through product diversification, digital transformation of business processes, and the implementation of sustainability principles to create healthy long-term growth. (*)