PT Indocement Tunggal Prakarsa (INTP) Q2 2024 earnings summary

Executive summary

• H1 domestic cement demand grew 2.2% YoY; domestic cement and clinker sales volume rose 10.0% to 8,869k tons, mainly supported by Semen Grobogan.

• Net revenue increased 1.9% to Rp8,124,738 million, while profit for the period fell 37.8% to Rp434,708 million.

• Domestic market share was 29.4%, including 37.7% in Java and 20.5% outside Java.

• Operating cash flow was negative Rp321,453 million; cash and cash equivalents ended June at Rp1,841,030 million.

Financial highlights

• Cost of revenue rose 5.2% to Rp5,826,365 million; gross profit declined 5.5% to Rp2,298,373 million.

• Operating income fell 30.5% to Rp575.8bn; operating expenses increased to Rp1,734,971 million from Rp1,594,851 million.

• Profit before tax was Rp543,162 million versus Rp882,781 million; net income tax expense was Rp108,454 million versus Rp184,349 million.

• Lower consolidated pricing, higher operating and distribution costs, and loan interest expense weighed on earnings; finance income was Rp12.4bn versus Rp44.0bn.

Market and industry conditions

• ASI data showed H1 domestic cement demand up 2.2%, with bag market contraction of 1.9% and bulk market growth of 13.2%.

• Bulk represented 30.2% of domestic volume, up from 27.3%; H1 market mix was 65% bag and 35% bulk, with bag volume down 2.6% and bulk up 15.8%.

• Regional market growth: Kalimantan +22.2%, Bali & Nusa Tenggara +11.9%, Java +3.1%; Sumatra -1.7%, Sulawesi -10.7% and East Indonesia -8.3%.

• Oversupply, weak purchasing power and price competition challenged the industry; infrastructure, smelters and IKN construction supported demand.