Sampoerna profit down 10.3%

JAKARTA: Cigarette maker PT Hanjaya Mandala Sampoerna, said on Wednesday its net profit for the first half fell 10.3 percent to Rp 796.2 billion from Rp 887.9 billion a year ago, mostly due to a decline in sales.

Indonesia's second largest cigarette maker said its sales for the first six months of this year fell 8 percent on year to Rp 6.975 trillion mostly due to the deconsolidation of revenue from its retail subsidiary PT Alfa Retailindo.

Sampoerna sold a 47 percent stake in Alfa Retailindo last year. Sampoerna didn't elaborate.

It said its operating profit fell 8.3 percent on year to Rp 1.257 trillion from Rp 1.371 trillion a year ago, mostly due to lower sales volumes. During the period, the company sold 17.69 billion sticks of cigarettes, down 8 percent from 19.21 billion a year earlier. -- Dow Jones