PT Holcim Indonesia Tbk, Nine Months Results of 2013

1 November 2013

New Holcim plant on line this month


Sound operating results, with higher investment to capitalize on medium term growth prospects

Jakarta, November 1st, 2013 – PT Holcim Indonesia Tbk has published unaudited financial results for the first nine months of 2013.


Selected comparative highlights: Unaudited nine months results 2013

Rp billion (except margin % and earnings per share in Rupiah) Nine months to Sept 30th 2013
Nine months to Sept 30th 2012
Sales 6,873 6,515
Gross Profit 2,271 2,287
Gross Profit Margin 33% 35%
Operating EBITDA 1,785 1,836
Net profit Earnings per share 640 78    938 119


Trading conditions

President Director, Eamon Ginley noted a rise in sales revenue of 5.5 per cent for the first nine months of 2013 to Rp 6,873 billion was indicative of slower than expected growth but remained positive on the company’s prospects going forward, as a new plant comes on stream ahead of 2014.

The slower rate of growth in construction during 2013 coincided with a substantial increase, of about 5 million tons, in annual cement supply capacity since the beginning of the year.  National cement sales are up 5.3 per cent to 41.6 million tons for the first nine months, while supply capacity is up 9 per cent to 59 million tons on an annual basis. Central bank policy on mortgage deposits has been effective in reducing speculative buying of houses and apartments, but has also impacted overall demand for housing. Progress on realizing infrastructure spending remains slow but commercial projects are proceeding.

‘Our performance is broadly in line with the growth of the economy, and prices have held up, given our brand strength and effective product distribution,’ said Mr. Ginley.  ‘We continue to make positive gains in extending our reach into outer island markets, while benefitting from strongest growth in our core Java market. Particularly encouraging has been the growth in ready mixed concrete sales of 29 per cent to Rp 1,111 billion on 16 per cent higher volumes to 1.3 million cubic metres.  Ready mixed concrete accounts for about 20 per cent of total cement usage.’ He added.

“We are looking beyond this period of supply-demand adjustment to a more positive medium term outlook,” said Mr. Ginley. In 2014 new capacity in the industry will be significantly lower than what was added in 2013 – and the 2014 additional capacity will come mostly from Holcim’s own new Tuban plant, which starts production this month, providing an additional 1.7 million tons. This will be an important contributor to meet the still growing demand for cement. A second kiln line of 1.7 million tons capacity is due to start in the first quarter of 2015.

The results

Rising costs of raw materials and higher transport costs due to fuel cost increases resulted in a narrowing of margins, with gross profits 0.7 per cent lower at Rp 2,271 billion. Production facilities and the company’s energy efficiency programme have played a significant part in ensuring manufacturing costs have been contained.

The largest cost factor has been the increase in finance expenses relating to the key investment in new capacity at Tuban, which will sustain medium growth and the company’s market position. Exchange costs on US Dollar and Euro denominated term facilities to finance equipment, have been impacted by the recent re-rating of the Rupiah against the US Dollar. Interest expenses were higher due to additional loan drawings made under Rupiah denominated facilities for working capital relating to new capacity and the expansion of the distribution network outside of Java. The full benefits of these measures will be evident in 2014 and in 2015.

Taking account of the effects of higher finance costs, Net Income for the nine months of Rp 640 billion was 31.8 per cent lower year on year, at Rp 78 earnings per share.  In September 2013 the company paid an interim dividend to shareholders of Rp 37 per share, an increase of 16 per cent on the previous interim distribution. The company’s balance sheet remains strong with total debt to equity of less than 50 per cent, and operating EBITDA for the period of Rp 1,785 billion.


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: +62 21 29861000 ext 8361
  Mobile: 0813 81818554
e-mail: e-mail:
website: website: