New capacity plus further investment plans position Holcim Indonesia ideally to capture Indonesia’s positive long term outlook.
Selected comparative highlights: Half Year Unaudited Results 2014
|Rp billion||Six months to June 30th 2014
|Six months to June 30th 2013
Jakarta, 4th August 2014
First half financial performance
Holcim Indonesia achieved almost 10 per cent year on year sales revenues growth for the first 6 months to Rp 4.93 trillion (2013: 4.48 trillion) driven by 3 per cent higher domestic sales volume and improved pricing. Indonesia’s cement sector growth in the first half of 2014 was 4 per cent to 28.9 million tons according to ASI data. Holcim’s main market of Java (56 percent of the national market) continued its strong performance by growing 5.6 per cent. Gross Profit at Holcim Indonesia was marginally higher at Rp 12 billion over the same period last year, impacted by cost pressures including Government-announced increases in electricity prices. Operating profit was 14 per cent lower at Rp 674 billion, in view of higher distribution costs, however a strengthening of the Rupiah during the first half 2014 contributed to a smaller differential of 3.8 per cent in Holcim’s Net Profit for the period at Rp 449 billion (2013: 467 billion).
Long Term debt increased to Rp 2.62 trillion as the company substantially completed the Tuban 1 plant and continued progress on the Tuban 2 plant. Holcim was excited to announce that their new Tuban 1 kiln started producing clinker on June 17, 2014. The debt level is as planned and refinancing efforts are on track and progressing well.
Second half operational outlook
Additional production from the commissioning of the new Tuban plant positions Holcim Indonesia to capitalise on any post election pick-up in market activity. In addition, the company will benefit from the effect of recent price increases to support sales revenue growth over the remainder of the year. Higher distribution costs - relating to clinker shipments in the first half, ahead of Tuban’s commissioning - will no longer apply for the rest of the year. Instead, Tuban’s presence will shorten delivery times and lower costs to serve to both the large East Java market and to inter-island including the fast growing markets such as Kalimantan and Sumatra.
Innovation and investment – medium term sustainable growth
Holcim will continue to play a leading role, in quality building materials solutions by investing further to expand and strengthen its presence. A new cement terminal project, already underway in Lampung, will shorten the supply chain to Sumatra, when it is completed in 2015. The second 1.7 million ton kiln line at Tuban, due for commissioning in the same year will provide headroom for future market growth.
After the election hiatus, the resumption of key national plans to revitalise infrastructure and urban development is expected to mark a return to normal business activity and private sector investment. Prevailing Government plans include US$ 35 billion for infrastructure in 2014-2017, with 15 out of a total of 50 large scale projects due to commence in 2014, including new airports, ports and roads, more electricity generating capacity as well as sewage, drainage and flood barrier improvements for the capital.
Across all major segments – housing and commercial/retail, manufactured concrete products and integrated concrete and aggregate production for large projects – Holcim Indonesia draws on its commitment to deliver customer excellence, innovation and technological solutions for fast track results. New contracts this year include applications in pervious concrete paving (ThruCrete) used to weather proof Juanda International Airport against flash floods and specialist concretes to accelerate urban road surface repairs (SpeedCrete) in and around Greater Jakarta. Among other projects in progress, the company’s new waste management facility, the ‘Green Zone’, on schedule to commence operations in the last quarter, will triple current capacity in safe waste management solutions.
About PT Holcim Indonesia Tbk
PT Holcim Indonesia Tbk (Holcim Indonesia) is a publicly listed company which its majority stake (80.65%), 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:
||Diah Sasanawati (Anna)|
|Relationship Management Director||Corporate Communications Manager|
|PT Holcim Indonesia Tbk||PT Holcim Indonesia Tbk|
|Mobile: 0811 860375||Phone Number: +62 21 29861000 ext 8361|
|Mobile: 0813 81818554|
|e-mail: email@example.com||e-mail: diah.sasanawati(at)holcim.com|
|website: www.holcim.co.id||website: www.holcim.co.id|