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)