HMSP – Expects a positive performance amidst high excise tax and weak purchasing power

HMSP – Expects a positive performance amidst high excise tax and weak purchasing power Hanjaya Mandala Sampoerna (HMSP) expects a positive performance amidst high excise tax and weak purchasing power as the company continue to diversify its products and grow its IQOS brand (smokeless tobacco cigarette) that offers more economic value. The price of IQOS is around IDR1,450 per stick, which is cheaper than the price of HMSP' white cigarettes at around IDR2,000 per stick. Moreover, with cheaper price, HMSP expects its IQOS sales could grow further this year amidst an average of only a 4% increase in National' minimum wage. At the same time, HMSP continues to expand its SKT' production by opening new facilities in Blitar and Tegal with a total investment value of IDR638 bn and are scheduled to start its operations in 1H24. Note that, HMSP posted revenue of IDR87.29 tn (+4.67% yoy) and net profit of IDR6.21 tn (+26.3% yoy) in 9M23, mainly due to higher ASP. (Source : Kontan)