Sampoerna's net sales rose 25.6% in 1997

Sampoerna's net sales rose 25.6% in 1997

JAKARTA (JP): Publicly listed cigarette maker PT HM Sampoerna
reported a 25.6 percent increase in net sales last year to Rp
2.97 trillion (US$330.22 million), the company announced
yesterday.

The company's finance director, Ekadharmajanto Kasih said
yesterday the company also posted a gross profit of Rp 998
billion in the same period.

He said operating income fell by 1.7 percent to Rp 625 billion
due to additional costs associated with the launching of a new
brand and internal restructuring.

Eka, however, declined to mention the net profit and foreign
exchange loss recorded in 1997.

"We cannot give the precise figure of the net profit and
foreign exchange loss as they are still being worked out," he
said, mentioning that there had been adjustments in calculating
the company's foreign exchange loss.

Eka also declined to make any financial projection for 1998.

He said the company had total liabilities of US$400 million in
1997, which were all hedged at the rate of Rp 2,450 against the
dollar in June last year.

"Sampoerna pays about $50 million in interest and hedging
premiums per year and the company does not have any problem at
all with interest payments," he said.

He said about $200 million of the company's dollar-denominated
liabilities were in Yankee bonds, $150 million in a syndicated
loan and $50 million in a financial lease.

He said the Yankee bonds would mature in 2006 and the
syndicated loan would be due in 2001.

"The financial lease will mature in the next three years," he
said.

A joint venture securities firm estimated that Sampoerna would
book a net profit of Rp 716 billion in 1997, up from Rp 636
billion in 1996.

"But the company will most likely record a lower-than-expected
net profit in 1997 due its expansion program," an analyst of the
securities firm said.

Eka said the company's total cigarette sales rose to Rp 2.40
trillion in 1997 from Rp 2.14 trillion in 1996.

He said hand-rolled brands accounted for Rp 1.59 trillion of
total cigarette sales and machine-rolled brands Rp 806.28
billion.

The company earned about Rp 3.82 billion from exports in 1997.
(aly)