JAKARTA – PT Semen Indonesia (Persero) Tbk (SMGR) recorded a significant drop in net profit in 2024, plunging 66.8% year-on-year (yoy). This aligns with the sluggish domestic cement industry, reflected in declining revenue.

According to its 2024 financial report, SMGR’s revenue contracted by 6.4% to IDR 36.2 trillion as of December.

Cement sales to third parties continued to dominate SMGR’s revenue in 2024, contributing IDR 27.2 trillion. However, this figure marked an 8.21% decline from the IDR 29.6 trillion recorded in 2023.

Despite the revenue contraction, the cost of revenue remained high, leading to a 22.1% slump in gross profit to IDR 7.9 trillion in 2024.

As a result, SMGR’s net profit plummeted 66.8% in 2024, from IDR 2.2 trillion to just IDR 719.8 billion.

SMGR’s profit decline had been evident since Q1 2024, with a 16% drop. By H1 2024, the decline worsened to 42.1%, and in Q3 2024, net profit fell further by 58%.

According to an analysis by PT Ina Sekuritas Indonesia, previously published on IDNFinancials.com, Indonesia’s cement industry is facing multiple challenges, including intense competition, oversupply, and government infrastructure budget cuts. (ZH)