Sampoerna posts higher net sales

Sampoerna posts higher net sales

JAKARTA: Indonesia's second largest cigarette maker, PT HM Sampoerna, said on Friday its net sales rose 5.2 percent in the second quarter to Rp 3.471 trillion (US$1=Rp 8,300) from Rp 3.298 trillion a year earlier, despite an 8 percent decline in sales volume.

The company didn't mention what the drove sales value higher amid a decline in volume, but analysts said the increase was expected after the company increased its cigarette prices late last year.

Sampoerna said its machine-rolled A-Mild family of brands continued to perform well as its sales volume declined only 1.3 percent while its turnover grew more than 16 percent in the three months ended in June.

Its premium and most famous hand-rolled Dji Sam Soe cigarette sales volume fell 7 percent during the period from last year, it said.

Sampoerna said Indonesia's cigarette demand showed signs of stabilizing in recent weeks, but evidence of a recovery is still negligible.

Cigarette sales volume in the country has been declining in the last two years after the cash-strapped government aggressively increased excise taxes to help the state budget. --Dow Jones