Holcim: 27% higher profit on 20% sales growth in 2012

26 February 2013

• Sales revenues Rp 9.01 trillion, profit Rp 1.35 trillion

• Proposed 2012 dividend increased to Rp 80 per share, up 45% on 2011 dividend

• Tuban first line of 1.7mt in 2013 and capacity to double to 3.4 mt by 2015

Jakarta, February 25th 2013 PT Holcim Indonesia Tbk published its 2012 financial statements today featuring sales growth of 19.8% to Ro 9.01 trillion and profit for the year up 27.0% to Rp 1.35 trillion, or earnings per share of Rp 176 up from Rp 139 in 2011. At the company’s Annual General Meeting of Shareholders (AGMS) to be held April 2nd 2013, the Board of Directors will propose a final dividend of Rp 48 per share, which follows an interim dividend of Rp 32 per share paid in September 2012. This would bring the total dividend final to Rp 80 per share, representing an increase of 45% from Rp 55 per share in 2011.


Domestic cement consumption grew 14.4% to 54.9 million tons in 2012, according to the Indonesian Cement Association, with the company’s main market of Java accounting for 60% of the total. Growth was driven by increased activity in real estate and commercial developments, fuelled by rising middle class spending power alongside progress in Government infrastructure plans. Holcim grew in line with the market, by 14.8% in volumes to 8.59 million tonnes of domestic cement sales. Company sales of ready-mixed concrete and aggregates were also strong accompanied by increased demand for Geocycle services in waste management.


Manufacturing costs were driven higher by fuel and raw materials prices however improvements in productivity, in capacity, use of alternative materials and cost reduction programmes ensured the escalation was manageable on a cost per tonne basis. Despite strong competition, further improvements in distribution, marketing and customer support have secured all Indonesia market share at 15.6 per cent.


These factors all contributed to ensure gross profit and income from operations were well maintained year on year, at 37% and 23% respectively.  Finance costs were reduced and adequate funding is in place for both capital expenditure and operating needs, with further efficiency evident in working capital management. 


Building capacity in engineering skills and expertise was boosted by the opening of a new campus in partnership with ATMI, (the Academy of Industrial Engineering). The building in itself is a model in sustainable construction, designed to be energy efficient and low impact throughout its entire life. Holcim continued in 2012 to be recognised for responsible environmental management receiving a Gold and Green PROPER award from the Ministry of the Environment and the Green Industry Award from the Ministry of Industry, those awards for the third year running. The company celebrated the Holcim Centennial with over 13,900 voluntary hours given by employees to work with communities to build proper roads, homes and sanitation facilities, mosques and the revegetation of coastal and inland sites near our plants.


Prospects are bright for the year ahead, based on sound fundamentals in interest rates, credit capacity, and a rising middle class with spending power to buy new homes. Demand is expected to rise at a more moderate rate, but sufficient to ensure the new capacity available at Tuban will be quickly utilised. Given the positive outlook, site capacity and economies of scale, plans for a second kiln line at Tuban have been approved. The second kiln line has now commenced construction at the site, and will add a further 1.7 million tons of cement capacity per year, bringing the total Tuban capacity for Holcim up to 3.4 million tons per annum. With the second Tuban line in operation by early 2015, Holcim Indonesia will have expanded domestic cement capacity from existing levels by 40%, ensuring Holcim can serve  growing customer needs on Java and an increasing inter-island presence.



About  PT Holcim Indonesia Tbk


PT Holcim Indonesia Tbk  (Holcim Indonesia) is a publicly listed company which its majority stake  (86.35%), is owned and managed by Swiss-based Holcim Group, one of the world’s largest cement companies with more than 85,000 employees and production capacity of more than 170 million tons of cement.


As one of the largest cement companies in Indonesia, PT Holcim Indonesia Tbk maintains integrated businesses of cement, ready-mix concrete, and aggregates production. The company operates three cement plants in Narogong-West Java,  Cilacap-Central Java, Tuban 1-East Java and a grinding facility in Ciwandan-Banten with total capacity of 11 million tons of cement and employs more than 2,500 employees.


PT Holcim Indonesia Tbk operates a domestic building material supply network, which covers special distributors, retailers, masons, and Solusi Rumah outlets – the outlet provides housing design service, building materials, building consultation, and financing access. All under one roof.


Further information please contact:

Rusli Setiawan Diah Sasanawati (Anna)
Relationship Management Director Corporate Communications Manager
PT Holcim Indonesia Tbk PT Holcim Indonesia Tbk
Mobile: 0811 860375 Telepon: +62 21 29861000 ext 8361
  Mobile: 0813 81818554
e-mail: rusli.setiawan@holcim.com e-mail: diah.sasanawati@holcim.com
website: www.holcim.co.id website: www.holcim.co.id