JAKARTA – PT Selamat Sempurna Tbk (SMSM) decides to revise the target of its sales growth for 2024 down to 2% from the initial target set to 8%.

The change in top-line growth target was announced by Ang Andri Pribadi, Vice President Director of SMSM during Public Expose Live 2024 SMSM via Zoom today (29/8). “As geopolitical condition has yet to improve, we need to correct the top-line growth target to 2%,” he added.

SMSM’s performance is indeed prone to numerous geopolitical conflicts due to its sales being dominated by globl market. Until June 2024, SMSM reported export of IDR 1.4 trillion, or 59% of its total sales in H1 2024 of IDR 2.35 trillion.

In H1 2024, exports to countries in Asia, Europe, and Africa region were also reportedly contracted yearly. However, exports to three of its main export destination countries, namely the United States, Australia, and Malaysia, booked increases as of June 2024.

Despite sales growth target that is only set to 2% year-on-year (yoy), SMSM is still confident about attaining net profit growth of 8% yoy.

According to the presentation of the management of SMSM today (29/8), within the past 19 years, the company has recorded compound annual growth rate (CAGR) of net profit higher than revenue; 29% compared to 19%.

In H1 2024, SMSM’s net profit also increased 3.71% yoy despite revenue decline of 5.26% yoy. “It could be concluded that the company focuses more on the bottom line. Raising top line is manageable, but if we could not boost the bottom line, that will not be good, as well,” said Pribadi.

It is worth mentioning that in 2023, SMSM’s revenue reached IDR 5.1 trillion, while its net profit attributable to the parent entity clocked up to IDR 944.2 billion. In other words, according to Pribadi, the company is projecting its net profit to be able to reach over IDR 1 trillion at the end of 2024. (ZH)