JAKARTA. PT Semen Indonesia (Persero) Tbk (SMGR) managed to post a profit increase of 19.1% year on year (yoy) to Rp 1.54 trillion amid the coronavirus (COVID-19) pandemic in the third quarter (Q3) of 2020 from Rp 1.29 trillion in the same period last year.
The net profit growth was largely due to the company's strategic initiatives in terms of cost leadership, integration of strategic functions, and lowering interest expenses through a refinancing programme that commenced in the second semester (2H) of 2019.
In Q3-2020, the company's revenue dropped 8.9% yoy to Rp 25.63 trillion from Rp 28.12 trillion; accordingly, its cost of revenue also fell by 11.5% to Rp 17.39 trillion.
"The cost of revenue drop was due to the company's ability to maintain cost efficiency," said Semen Indonesia Corporate Secretary Vita Mahreyni.
The company's strategy in maintaining cost efficiency, Ms Mahreyni added, included optimising raw and supporting material management; integrating marketing, distribution, and procurement; and utilising industrial waste as an alternative source of raw materials. (AM/MS)