PT Indocement Tunggal Prakarsa (INTP) Q2 2023 earnings summary

Executive summary

• H1 2023 revenue rose 15.3% YoY to Rp7,970,017 million; profit for the period increased to Rp698,432 million from Rp291,548 million.

• Gross margin improved to 30.5% from 25.6%, and EBITDA margin to 18.7% from 13.3%.

• Domestic cement sales grew 7.2% to 8,061k tons despite a 4.9% market contraction; total market share rose to 27.4% from 24.7%.

Financial highlights

• Gross profit increased 37.5% to Rp2,431,991 million; cost of revenues rose 7.7%, below revenue growth.

• Profit before tax was Rp882,781 million versus Rp367,676 million; basic EPS rose to Rp203.56 from Rp82.80.

• Operating cash flow was a Rp48,553 million outflow, compared with a Rp71,532 million inflow in H1 2022.

Segment performance

• Total sales volume increased 8.8% to 8,360k tons, including domestic volume of 8,061k tons and exports of 299k tons, up 81.4%.

• Cement generated segment profit of Rp672,933 million versus Rp302,796 million; ready-mix concrete returned to profit of Rp8,260 million from a Rp13,166 million loss.

• Outside-Java market share rose to 20.6% from 14.5%, while Java share was relatively stable at 33.9%; Maros operations were a key contributor to domestic volume growth.