Holcim Indonesia First Quarter Unaudited Results 2015


Weak demand, rising costs, pending public spending programmes on infrastructure and improved sentiment

Selected comparative highlights: First Quarter Year Unaudited Results

Rp Billion 3 Months to March 31st 2015 (Unaudited) 3 Months to March 31st 2014 (Unaudited)
Sales  2,250 2,356
Gross Profit  533 689
Operating EBITDA  358 525
Operating Profit  157 373

Jakarta, 30th April 2015 

First quarter financial performance


Holcim Indonesia recorded a decline in sales revenue of 5% to Rp 2.25 trillion, on 7% lower volume for the first three months of 2015 compared to the same period in 2014, as the Indonesian cement market contracted. National demand for cement fell to 13.9 million tons compared to 4% growth or 14.3 million tons over the first quarter last year. In addition, at the request of Government, state-owned cement producers adjusted prices down by Rp 3,000 per bag impacting the whole industry. Unfortunately, this intervention, while impacting market prices in general, has failed to stimulate any recovery in demand thus far.

Costs over the same period have escalated, reflecting both rising energy, labour and raw materials prices in general, and higher capacity from the recent expansion in manufacturing facilities at Holcim Indonesia. Raw materials costs were 30% higher, labour costs were 27% higher, and electricity costs have risen steadily through 2014 by over 60%. These trends were reflected in a 23% reduction in the level of gross profit from Rp 689 billion to Rp 533 billion.

As the battle in a softer market led to lower sales volume, distribution and selling costs over the first quarter were broadly unchanged, in addition to general and administrative costs crept higher due to some administrative project work. The increase in debt to fund equipment and construction for the Tuban project was evident in higher finance expenses, up 23% to Rp100 billion. Net profit for the quarter was Rp 33 billion compared to Rp 323 billion in 2014.

In announcing the first quarter unaudited result, Kent Carson, CFO of Holcim Indonesia, said, “The cement industry as a whole faces some significant challenges, in the continued downward trend for this sector of the economy, and the absence, so far, of anticipated stimulus from fiscal spending on upgrading infrastructure.” He continued, “At the same time, competition has escalated significantly with considerable new capacity introduced, creating substantial oversupply in a market where costs continue to stubbornly climb.”

Responding to these conditions, the company has identified a number of ways to reduce overhead and improve productivity. “We have initiated several programmes for 2015 to streamline our operations to ensure we can operate more efficiently at reduced costs to preserve margins in a slower growth scenario,” said Kent Carson. He added, “these measures will also help ensure we are fit for the future when the construction sector regains momentum from much needed infrastructure activity, the backbone of the Government’s ambitious national development plans, together with housing and commercial property projects.”


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 Phone Number: +62 21 29861000 ext 8361
  Mobile: 0813 81818554
e-mail: rusli.setiawan@holcim.com e-mail: diah.sasanawati(at)holcim.com
website: www.holcim.co.id website: www.holcim.co.id