Indonesian cement manufacturer PT Indocement Tunggal Prakarsa has released its 3Q13 financial results.
- Total sales volumes were 13.104 million t, a slight increase of 0.6% y/y from 13.021 million t in 3Q12. Domestic sales decreased by 0.2% y/y from 12.944 million t in 3Q12 to 12.921 million t in 3Q13 and exports sales saw a huge increase of 134% y/y from 78 000 in 3Q12 to 183 000 in 3Q13.
- Net revenue stood at IDR13 348 billion, a 7.9% y/y increase from IDR12 370.7 billion in 3Q12, mainly due to a rise domestic sales prices compared to that of the previous year.
- Gross profit rose by 7.2% y/y to IDR6269.4 billion from IDR5847.6 billion in 3Q12, although the gross profit margin slightly decreased to 47% from 47.3% in 3Q12.
- Cost of revenues/t rose by only 7.8%, due partly to the ongoing depreciation of IDR against US$ by around 20% in the first nine months of 2013, although the company’s cost of revenues in absolute amount increased by 8.5% as a result of additional sales volumes of ready-mixed concrete.
- Operating expenses increased by 9.4% y/y to IDR1922.7 billion from IDR1757.3 billion in 3Q12, predominantly due to higher logistic costs and the impact of the increase in distribution tariffs and salary following an annual salary increase.
- Operating income saw a 6.8% y/y increase from IDR4148.4 billion in 3Q12 to IDR4429.4 billion in 3Q13.
- EBITDA increased by 6.9% y/y to IDR5031 billion from IDR4706.2 billion in 3Q12, but the EBITDA margin slightly decreased from 38% to 37.7%.
The company is hopeful that domestic demand will keep growing in the medium-term as new infrastructure projects trigger an increase in domestic consumption. Indocement is in the final stages of completing the construction of a new 1.9 million tpa cement plant in Citeureup in anticipation of this increasing demand.
The construction of a 4.4 million tpa brownfield cement plant (Plant 14 project) in the Citeureup area has already begun. Completion of the plant is expected in 2015. Indocement also has plans underway to construct two new 2.5 million tpa greenfield cement plants in central Java and on the outskirts of Java.
Adapted from press release by Rosalie Starling
Read the article online at: https://www.worldcement.com/asia-pacific-rim/09122013/growth_in_revenue_for_indocement_in_3q13_491/