Gudang Garam and HM Sampoerna's Profits Decline in the First Half of 2021

The profits of two major national cigarette producers saw a decline in the first half of this year. The implementation of restrictions on community social activities during the Covid-19 pandemic was one of the factors influencing the performance of these cigarette companies.

PT HM Sampoerna Tbk (HMSP) experienced a 15.4% decrease in profit to Rp 4.13 trillion in the first half of 2021 compared to the first half of 2020. Similarly, PT Gudang Garam Tbk (GGRM)'s profit decreased by 39.53% to Rp 2.31 trillion in the first half of this year.

Meanwhile, the profit of cigarette producer PT Wismilak Inti Makmur Tbk (WIIM) increased by 44.56% to Rp 63.04 billion in the first half of 2021 compared to the first half of 2020. Similarly, PT Indonesia Tobacco Tbk (ITIC) achieved a 40.51% increase in profit to Rp 6.03 billion.

In contrast, PT Bentoel International Investama Tbk again experienced a loss in the first half of this year of Rp 28.9 billion, while last year's loss amounted to Rp 165.44 billion. This cigarette company, with the trading code RMBA, has applied to the Indonesia Stock Exchange to change its status to a private company (go private), and its shares have been suspended since August 6, 2021.

By Thursday, September 9, 2021, the HMSP share price had fallen 29.34% to Rp 1,005 per unit compared to its position at the end of 2020 (year to date/ytd). Similarly, GGRM shares fell 12.5% to Rp 33,550, ITIC shares fell 52.61% to Rp 308, and WIIM shares fell 6.1% to Rp 488 per unit.