Indonesian cigarette makers said production costs lower profits

compile Indonesian cigarette makers think, high cost and the current currency fluctuations are caused by cigarette manufacturing industry in the whole development of the cause of the slow in 2012.

Indonesia salt warehouse company (PT Gudang Garam) income grew by 17.1%, to 49.03 trillion rupees.But the company’s spending has increased by 25.6%, to 39.84 trillion rupees.Spending due to currency fluctuations and the growth of the loss of the company in 2012 net profit of 4.01 trillion rupees, fell by 18% on the previous year.

Salt warehouse company in November 2012, said at a press conference, held it clove in Indonesia is expected to yield will increase, pushing prices stabilize.

Another cigarette makers native international investment company (PT Bentoel Internasional Investama) announced that its revenue fell by 2.2%, slightly reduced to 9.85 trillion rupees.With salt warehouse company, it also said the rising costs of goods sold in 2012, rising by 5.5%, to 8.18 trillion rupees.

This company said that it appeared a net loss of 323.35 billion rupees, by contrast, 2011 net profit of 306 billion rupees.In a document submitted to the Indonesia stock exchange, it will be a net loss of reason, clove prices sharply higher.At the same time, it also added that sales also fell because of the consumption tax on the lift.

Sampoerna company reported at the same time, Indonesia, due to sales growth, its 2012 revenue grew by 26%, to 66.63 trillion rupees.It managed to sell up to 107.7 billion cigarettes last year, the cigarette sales rose by 17.4% over 2011.

In 2012, sampoerna cost of goods sold has increased by about 28%, to 48.12 trillion rupees, and its net profit jumped 23.3%, to 9.94 trillion rupees.The increase of cost of goods sold to the company’s net profit and income rate fell to 14.9% from 15.3% in 2011.

PT Wismilak Inti Makmur company to report, because the cigarette sales growth of 11%, sales of 2 billion, its total revenue increased by 20.9% over 2011, 1.12 trillion rupees.The company also reported, because the sales growth, the company’s cost of goods sold surged by 22.6%, to 814.42 billion rupees.

But, despite income growth is good, but Wismilak company or experienced a decline in net profit in 2012, the company in 2012 net profit fell 40.3%, to 77.2 billion rupees.

Wismilak company’s latest financial report shows, the company has the interest costs increase, the foreign-exchange loss, as well as in the sale of fixed assets income reduce many.

According to Wismilak company secretary Surjanto Yasaputera said that the company sold assets such as land and houses in 2011, the company offers a huge nonoperating income.

He said in a telephone interview: “we are not received in 2012 so much nonoperating income.”Company in 2012, the revenues from the sale of fixed assets is 6.42 billion rupees, only the figures for 77.86 billion rupees in 2011.

The Indonesian government plan will consumption increased by 8.5% this year.It also requires cigarette makers in accordance with the new tobacco control laws and regulations, to the mid – 2014, the printed graphic health warnings on cigarette packaging 40% of the surface.

Surjanto said that the company expects cigarette tax and health warnings will not have big impact on cigarette sales.He said: “consumption tax is always on the way, so it’s not a fresh thing. Print the health warnings, consumers may be surprised at the beginning, but after that it will return to normal.”

According to the trust securities analyst Reza Priyambada says, overall, cigarette makers throughout 2012 are facing similar problems: rising prices of raw materials and the consumption tax.He said: “the tobacco industry is like from head to toe by ‘hit'”.

He added that the new tobacco regulations completely before execution, the tobacco companies still have time to strengthen their brand.