JAKARTA - Cigarette company PT Gudang Garam Tbk (GGRM) recorded a net profit of IDR 981 billion in 2024, down 81% from the previous year which reached IDR 5.3 trillion.

According to the latest financial report, the decline in GGRM's net profit is in line with its revenue, which fell 17% from IDR119 trillion in 2023 to IDR99 trillion in 2024. In the last six years, the company's revenue has fallen below IDR100 trillion.

Sales of machine-made clove cigarettes (SKM), the company's mainstay, declined by 9% to IDR87 trillion in 2024.

Meanwhile, the non-cigarette sector also added to the company's expenses. The infrastructure and carton segments recorded losses of IDR377 billion and IDR104 billion, respectively.

On the other hand, cigarette production costs account for 90% of the company's total revenue. The cost of excise tax and cigarette tax, which soared to IDR74 trillion, was the main factor suppressing profit margins. The company's operating expenses also increased by 5%, to IDR 7.7 trillion.

According to IDNFinancials.com data, GGRM experienced an 8.13% decline in total assets to IDR84.93 trillion as of 31 December 2024. Meanwhile, the company's total equity reached IDR61.91 trillion, a slight increase from IDR60.86 trillion in 2023.(DH/LM)