JAKARTA. The volume of cigarette sales of PT HM Sampoerna Tbk (HMSP) was corrected 4.1% year-on-year (yoy) to 40.5 billion sticks in the first half of 2023.

Previously in H1 2022, the volume of cigarette sales of HMSP hit over 42.3 billion sticks.

This decline is in accordance with the performance of cigarette industry in Indonesia that slowed 5.6% yoy. According to the report of HMSP’s controller, Philip Morris International (PMI), the volume of cigarette sales in Indonesia in H1 2023 hit over 141.1 billion sticks, whereas the sales in the same period last year were 149.5 billion sticks.

Jacek Olczak, Chief Executive Officer of PMI, said that his company is still quite confident in the fundamental aspects of Philip Morris Group that will be quite solid in the second half. “Therefore, we raise out net profit forecast until the end of 2023 to 7.5% to 8.5%,” he said in the official disclosure.

Earlier in 2023, PMI estimated a decline in the volume of global cigarette sales in the first half by 1% to 2%. However, this estimation was made without putting the volume of sales in China and United States into consideration.

Although the sales volume shrank in H1 2023, PMI’s market share of cigarettes in Indonesia rose to 28.7%. Previously in H1 2022, PMI’s market share was only 28.3%.

For the record, HMSP booked net profit of IDR 2.16 trillion in Q1 2023, as stated in the data compiled by IDNFinancials. The net profit in this period shifted 12.85% yoy. (KR/ZH)