Semen Gresik books higher profit

Semen Gresik books higher profit
Published: 01 February 2006

PT Semen Gresik Tbk will have booked the net profit of IDR900 billion last year, representing an increase of 72.88 per cent from IDR520 billion on the previous year.

The operating profit of the company, meanwhile, reached IDR1.3 trillion, while the sales value reached IDR7 trillion, with the total sales volume of 16.34Mt.

The Finance Director of Semen Gresik, Cholil Hasan, said that the better performance of the company was due to the higher production volume as well as the higher selling price of cement, the product of the company.

"The figure is temporary as the auditing process is still going on. With the pretax profit of IDR1.3 trillion to IDR1.4 trillion, it means we will book the net profit of IDR900 billion," Cholil said on Monday.

In 2004, Semen Gresik booked operating profit of IDR957 billion, with the total sales revenue of IDR6.07 trillion.

The revenue growth of the company, he said, was higher than the cost growth, due to the success of efficiency measures on the lines of production, energy, distribution, and financing.

Apart from that, the company has increased the selling price of cement by 15 per cent last year, while the energy price increase has increased the production cost by 10 per cent only.

He said this year’s performance will depend on the further efficiency measures, especially on energy, distribution and financing.

"The increase of production volume will be limited this year, due to the limited capacity of our facilities and the lower purchasing power of consumers," he said.

He added, however, that the company set the net profit target of IDR1 trillion this year.