PUBLISHED ONApril 27, 2018 6:16 PM
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JAKARTA, Indonesia, April 27, 2018 /PRNewswire/ -- PT HM Sampoerna Tbk. ("Sampoerna" or "the Company") (IDX: HMSP) announced today its full year 2017 results. The Company maintains its leadership position in Indonesia with 33.0% market share and 101.3 billion units in annual sales volume. Sampoerna's market leading 33.0% share comprises machine-made kretek cigarettes segment or SKM (22.7%), hand-rolled kretek cigarettes segment or SKT (6.6%), and white cigarettes segment or SKM (3.7%).
President Director of PT HM Sampoerna Tbk. (Sampoerna) Mindaugas Trumpaitis (third from left) gave presentation at the General Meeting of Shareholders 2018 at Indonesia Stock Exchange Building, Jakarta, Friday (4/27/2018). Sampoerna announced business performance in the first quarter of 2018. Market share increase to 33.2% with sales of 23 billion cigarettes.
President Director of PT HM Sampoerna Tbk. (Sampoerna) Mindaugas Trumpaitis (right), accompanied by Director of Finance William Reilly Giff, gave explanation to Public Expose 2018. Market share increase to 33.2% with sales of 23 billion cigarettes. This is supported by the strong performance of Marlboro Filter Black, and Dji Sam Soe Magnum Mild, clove cigarette machine product with a lighter flavor resulting from the development of the Dji Sam Soe, which was launched in May 2017.
The Company reported net revenues of Rp. 99.1 trillion, up by 4% compared in 2016. The Company declared a dividend of Rp. 107.3 per share for 2017. Sampoerna was Indonesia's largest taxpayer in 2017, with payments to the Indonesian government totaling approximately Rp. 70.3 trillion.
Mr. Mindaugas Trumpaitis, President Director of Sampoerna stated, "We are proud that Sampoerna remains Indonesia's market leader. We recorded net revenue growth in 2017, despite a 2.6% industry volume decline that was due to softness in consumer consumption and shifting consumer behavior. This is a solid result and indicates the strength of our brands and the quality of the Sampoerna team."
The Company maintains its dedication to the SKT segment. While this segment has been under long-term pressure as a result of a shift in adult smokers' preferences towards machine-made products, Sampoerna remains Indonesia's "King of Kretek" as the country's largest SKT manufacturer with a market leading 37.5% share of the segment.
"Periodically, opinions are offered suggesting Sampoerna is now a 'white cigarette' company. Nothing could be further from the truth. In fact, we've made every effort to stabilize the SKT segment, including innovations to enhance our brands, like our Dji Sam Soe 10+2 offering, maintaining competitive prices on SKT products and investing in the brands through marketing and sales activities. We also lead the market with more than 40 hand rolling factories across Java, including over 60,000 direct and indirect employees. It is fair to say, no one supports SKT like Sampoerna," added Mr. Trumpaitis.
Separately, the Company announced its 2018 first-quarter results. Market share grew to 33.2% with 23.0 billion units in sales volume. This was driven by the strong performance of Marlboro Filter Black, as well as Dji Sam Soe Magnum Mild, a lighter-tasting SKM segment line extension from the Dji Sam Soe brand family, launched in May 2017.
In the quarter, Indonesia's cigarette industry volume declined by 2.3 percent, largely reflecting the soft consumer spending environment coupled with above inflation excise tax-driven price increases. For the year, the Company continues to anticipate an industry decline of 1 percent to 3 percent.
Change of Leadership
The Company announced three new members of the Board of Directors, including Yohanes Wardhana, Elvira Lianita and Ingo Rose. Mr. Wardhana replaces Mimi Kurniawan, who is appointed Vice President Latin America & Canada in Philip Morris International's headquarters in New York. Ms. Lianita replaces Yos Adiguna Ginting, who is now appointed as a Sampoerna Commissioner. Mr. Rose replaces Andre Dahan, who is appointed Vice President Human Centric Marketing RRP in Philip Morris International's operations center in Switzerland.
About PT HM Sampoerna Tbk. (Sampoerna)
Founded in 1913, Sampoerna - an affiliate of PT Philip Morris Indonesia and part of Philip Morris International Inc. - is the leading Indonesian tobacco company, focusing primarily on the production and sale of clove cigarettes. The Company produces some of the best-known kretek (clove) cigarette brand families such as Sampoerna A, Dji Sam Soe the legendary "King of Kretek", Sampoerna U and Sampoerna Kretek. The Company also distributes the Marlboro brand of cigarettes throughout Indonesia, through a long-term distribution agreement with PT Philip Morris Indonesia. Sampoerna operates seven production facilities in Java and partners with 38 Third Party Operators, employing - directly and indirectly - a total of approximately 67,400 employees, mostly in the production of hand-rolled clove cigarettes. Sampoerna distributes its products via 106 sales and distribution area offices across Indonesia.
Sampoerna is the largest company by market capitalization on the Indonesian Stock Exchange, where it trades under the ticker symbol "HMSP."
For further information, please visit: www.sampoerna.com
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