Sampoerna's profit up from sales

Sampoerna's profit up from sales

JAKARTA: Indonesian cigarette producer PT HM Sampoerna posted a sharply higher half-year net profit on Monday on the back of stronger sales and gains in the foreign exchange market.

The company, a unit of Philip Morris International, reported a 44.42 percent year on year net profit rise to Rp 1.57 trillion (US$159.90 million) with sales up 34 percent to Rp 11.28 trillion.

Sampoerna, the country's third largest clove cigarette maker, was acquired by Philip Morris in May after it paid more than $5 billion for a 98 percent stake in the company from the founding Sampoerna family and the public.

It said foreign exchange gains reached Rp 30.35 billion but first half operating profit grew at a slower pace, rising 25.79 percent year-on-year to Rp 2.21 trillion due to increased production costs and operating expenses.

Production costs rose 39 percent to Rp 7.83 trillion while operating expenses were up 19 percent to Rp 1.24 trillion. -- AFP