JAKARTA, 19 July 2004 - PT Hanjaya Mandala Sampoerna (HMSP.JK) Monday said its first half sales this year rose 17% on year to 8.15 trillion rupiah (EUR1=IDR11,088), mostly on stronger cigarette sales. Indonesia's second largest cigarette producer's sales rose from IDR6.99 trillion in the first half of 2003, Sampoerna said in a statement. During the first six months of this year, it sold 20.2 billion sticks of cigarettes, up 14% from 17.7 billion a year earlier.
Sampoerna said last year's sales of its machine-made cigarettes jumped 23% to 8.22 billion sticks from 6.67 billion a year earlier. Sales of its hand-rolled cigarettes advanced 8.7% to 11.98 billion sticks from 11.02 billion. "As street prices stabilized, cigarette consumption continued to benefit from rising purchasing power," Sampoerna said.
The company said without significant direct competition and "with our proven premium positioning and pricing strategy, we are confident that our leadership on the low-tar and low-nicotine segments are sustainable in the medium and longer term." "We remain optimistic with the outlook of sales volume for the remainder of the year," it added.
Analysts expect the company's 2004 net profit to pick up significantly, as the government has said it won't increase the excise tax this year on cigarettes. The taxes form a large part of Sampoerna's expenses. Analysts also expect Sampoerna to record higher cigarette sales this year in the run-up to the parliamentary and presidential elections. The country's largest cigarette maker, PT Gudang Garam (GGRM.JK) is expected to announce 2003 results next month.
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