Cigarette Sales Decline, Gudang Garam Issuer (GGRM) Cuts Costs

Jakarta, CNBC Indonesia — The cigarette producer issuer PT Gudang Garam Tbk (GGRM) recorded a 58.7% year-on-year (yoy) increase in net profit for the full year 2025. Referring to the latest financial report cited from the Indonesia Stock Exchange (BEI) disclosure, the profit for the year for this Gudang Garam Filter cigarette brand issuer in 2025 was recorded at Rp1.55 trillion. Meanwhile, in 2024, the company booked a profit of Rp980.81 billion. The profit improvement was supported by efficiency in expenses amid declining revenue. It is known that GGRM’s revenue fell 9.4% yoy to Rp89.37 trillion, from previously Rp98.64 trillion. The cost of goods sold also decreased to Rp80.38 trillion. Previously, this position contributed a reduction of Rp89.27 trillion. Although it reduced the cost of goods sold, it was not yet able to maintain the company’s gross profit, which declined 4.21% yoy to Rp8.98 billion. If detailed, all GGRM business lines experienced pressure. Machine-rolled clove cigarettes (SKM) fell 8.32% to Rp79.41 trillion. Then hand-rolled clove cigarettes (SKT) fell 15.28% yoy to Rp7.9 trillion. Both export and domestic sales experienced declines. The biggest efficiency carried out by the company was in the operating expense position, which fell 13.81% yoy to Rp6.63 trillion. The company cut transportation costs, shipping, advertising, promotion, and other marketing expenses by 39.25% to Rp1.44 trillion. In addition, GGRM also cut employee compensation by 18.34% to Rp1 trillion. In terms of capital, as of December 2025, the company recorded assets of Rp75.25 trillion. This is down from the period of 31 December 2024 with an acquisition of Rp84.93. Meanwhile, GGRM’s liabilities and equity were recorded at Rp12.68 trillion and Rp62.57 trillion, respectively.