JAKARTA – Massive promotion of processed tobacco products is deemed insignificant in boosting sales of  PT Gudang Garam Tbk (GGRM), according to Heru Budiman, Director of GGRM, during Public Expose Live 2024 via Zoom today (29/8).

“Our marketing strategy is emphasised on distribution, ensuring tobacco products’ availability in all selling points,” added Budiman.

According to Budiman, extensive promotion does not boost consumers’ purchasing power, especially when cigarette consumption is greatly influenced by buying power of consumers. Therefore, selling expenses of GGRM remains relatively stable from year to year.

In 2023, its operating expenses reached IDR 7.3 trillion or 6.2% of total revenue of IDR 119 trillion. In H1 2024, opex was also recorded at IDR 7.3 trillion or 7.3% of total revenue of IDR 50 trillion.

In H1 2024, GGRM’s revenue consisted of sales of machine-rolled kretek cigarettes (SKM) of IDR 44.53 trllion, hand-rolled kretek cigarettes (SKT) of IDR 4.90 trillion, klabat cigarettes of IDR 5.45 billion, carton of IDR 472.63 billion, and others of IDR 103.40 billion.

For comparison, in H1 2023, GGRM’s revenue was made up of sales of SKM of IDR 50.74 trillion, SKT of IDR 4.40 trillion, klabat cigarettes of IDR 6.24 billion, carton of IDR 574.29 billion, and others of IDR 112.53 billion. (LK/ZH)