PT Indocement Tunggal Prakarsa (INTP) Q1 2023 earnings summary

Executive summary

• Q1 cement market volume fell 6.5% YoY, while domestic sales volume rose 6.6% to 4,303k tons, supported by Maros operations; exports reached 156k tons, up 368.6%.

• Net revenue rose 19.3% to Rp4,245,677 million; gross margin improved to 30.1% from 27.0% and EBITDA margin to 18.2% from 13.8%.

• Net income was Rp371,373 million, compared with Rp182,555 million in Q1 2022; operating cash flow was Rp54,360 million, versus cash used of Rp3,592 million.

Financial highlights

• Net revenue increased to Rp4,245,677 million from Rp3,557,727 million YoY, reflecting higher volume and prices.

• Cost of revenue rose 14.3% to Rp2,969,756 million, driven by raw materials and manufacturing overhead, partly offset by lower energy costs following DMO coal.

• Gross profit was Rp1,275,921 million, compared with Rp960,444 million; operating expenses were Rp822,210 million versus Rp776,909 million.

• Profit before income tax was Rp468,170 million versus Rp229,589 million; finance income was Rp46,013 million and finance costs were Rp13,456 million.

• EBITDA rose 57.3% to IDR 772.3bn from IDR 491.0bn.

Outlook and guidance

• National domestic cement volume is expected to grow ~2% in 2023, with recovery anticipated after the holiday season.

• Lower, relatively stable coal prices and greater access to DMO coal are expected to support energy costs for cement producers.

• Maros operations aim to build East Indonesia volume and increase exports; investment priorities include sustainability, distribution, digitalization and automation.

• Green Cement products are being promoted for infrastructure and commercial projects, including IKN.