PT Indocement Tunggal Prakarsa (INTP) Q3 2023 earnings summary

Executive summary

• 9M2023 revenue rose 10.9% YoY to IDR 12,927,691 million; gross and EBITDA margins improved to 31.6% and 19.6%.

• Profit for the period increased 33.8% to IDR 1,267,267 million; operating cash flow rose to IDR 1,387,890 million.

• Domestic cement and clinker sales volume reached 13,294k tons, up 7.1%; exports were 445k tons, up 61.7%.

• The domestic cement market contracted 0.6%; bag demand fell while bulk demand grew.### Financial highlights

• 9M2023 revenue was IDR 12,927,691 million vs IDR 11,660,945 million; cost of revenue was IDR 8,839,130 million vs IDR 8,218,455 million.

• Gross profit increased to IDR 4,088,561 million from IDR 3,442,490 million; operating income rose 30.0% to IDR 1,514.8bn.

• Net profit was IDR 1,267,267 million vs IDR 946,852 million; EBITDA rose 24.2% to IDR 2,529.4bn.

• Net cash from operations increased to IDR 1,387,890 million from IDR 1,024,922 million; cash and equivalents were IDR 4,781,451 million at 30 September 2023.

• Total assets were IDR 25,783,330 million and equity IDR 20,285,201 million at 30 September 2023.

Outlook and guidance

• Full-year 2023 national domestic cement volume was expected to grow up to 1%, with weak bag demand likely to continue despite strong bulk sales.

• Lower coal prices and improved access to DMO coal supported energy costs; higher WTI prices and IDR weakness could pressure non-subsidized fuel costs.

• Samarinda Terminal was expected to reach full capacity by December 2023, supporting bulk cement supply to IKN.

• Green cement sales, especially bulk slag and hydraulic cement, were expected to expand; investment priorities included sustainability, digitalization, automation and distribution synergies.

Segment performance

• Maros operations were the main contributor to domestic sales growth and were expected to support East Indonesia penetration and export expansion.

• Domestic market share was 27.6% overall, with 34.1% in Java and 20.8% outside Java.

• Cement external sales were IDR 11,867,943 million and segment profit IDR 1,228,874 million; ready-mix sales were IDR 1,001,845 million and segment profit IDR 10,974 million.

• Aggregates external sales were IDR 57,903 million and segment profit IDR 27,211 million.