JAKARTA - In the first six months of this year, PT Gudang Garam Tbk (GGRM) posted a 7.3 percent increase in sales volume to 45.6 billion sticks. Sales revenue increased 12.9% to IDR60.6 trillion.
Gross profit margin fell from 16.1% in 2020 to 10.8% in 2021 as a result of the high excise tax increase in the last two years. In the condition of not improving purchasing power, the trend that was seen before the pandemic, where consumers turned to cheaper products still continued in the full flavored SKM and SKT categories.
Cost of goods sold increased by 20.1% which was mainly due to an increase in excise duty. Excise duty now reaches 84.8 percent of the cost of goods sold, which cuts the company's gross profit margin.
This resulted in a 39.5% decrease in net profit to IDR2.3 trillion compared to IDR3.8 trillion last year. The capital expenditure of IDR 2.4 trillion was mostly used for the procurement of machinery and equipment as well as the development of the Dhoho airport project. (LM)