Staying as Market Leader in South Sumatra Region, Semen Baturaja Optimistic to Reach Target in 2022

PALEMBANG – PT Semen Baturaja (Persero) Tbk (SMBR) held an online Public Expose on Tuesday (13/09) to comply with Indonesia Stock Exchange Regulation Number I-E concerning Obligation to Submit Information. On this occasion, Daconi as the President Director of PT Semen Baturaja (Persero) Tbk explained the positive achievements that the Company has achieved throughout the half of 2022.

After the Covid-19 pandemic, the growth of the cement industry in Indonesia is getting better. The total demand for National Cement in Semester I/2022 reached 29.4 million tons, an increase of 1.2% compared to the same period the previous year. However, this growth was not in line with demand on the island of Sumatra, which actually fell by 1.6% (yoy).

In the midst of the decline in demand, SMBR was able to record sales volume growth of up to 5% (yoy) or 890,136 tons. SMBR cement sales from the retail segment increased by 4.9% and the project segment increased by 1.9%. In terms of composition, SMBR’s cement sales are still dominated by the retail segment as last year.

The sales volume growth boosted SMBR’s revenue and net profit which also grew positively. SMBR recorded a revenue increase of 8% (yoy) to Rp825.5 billion until June 2022.

“In fact, SMBR’s net profit increased significantly to 495% or Rp. 15.78 billion compared to last year.” Daconi said.

In Semester I/2022, SMBR’s financial position was quite good, as seen from the maintained total assets, liabilities (liabilities) and equity as well as the final cash and cash equivalents (Nett Cash) which increased compared to the previous year.

SMBR’s positive performance is inseparable from strategic initiatives that have been implemented by Management, starting from the Cost Leadership through SMBRGO45 Program, Strengthen Market Positioning and Competency Improvement of Employees.

In the Cost Leadership initiative, SMBR carries out various cost efficiency efforts in various fields. Management also strengthens Market Positioning, including through structuring sales channels and expanding sales area coverage through digital platforms so that sales volume is able to grow amid declining demand.

The Competency Improvement of Employee initiative focuses on efforts to create superior and professional human resources by developing a talent management system.

Thanks to positive performance achievements throughout Semester I/2022 and supported by a number of strategic initiatives that have been carried out, Management is increasingly optimistic that it will be able to achieve the target by the end of 2022.

Furthermore, SMBR will continue to encourage improvements in operational patterns and development efforts to be more in line with sustainability principles, especially in facing challenges in the cement industry in the future, such as increasing the use of alternative fuels and substitute materials as well as supporting the government’s efforts to reduce GHG emissions. {}