HMSP – Net profit declined 35.83% yoy in 1H25

HMSP – Net profit declined 35.83% yoy in 1H25 HM Sampoerna (HMSP) recorded net sales of IDR55.17 tn in 1H25, a 4.57% yoy decline from IDR57.82 tn in 1H24. Net profit fell by 35.83% yoy to IDR2.13 tn, due to lower sales. Sales volume decreased 1.5% yoy to 39.3 bn sticks, driven by a downtrading trend as consumers shifted from premium to lower-priced products amid weaker purchasing power. Despite the decline, market share rose by 0.8 percentage points to 31%. The company cited illegal cigarette circulation and significant excise tax hikes as ongoing industry challenges. Based on Bea Cukai data, illegal cigarette enforcement has escalated: seizures rose from 253.7 mn sticks in FY23 to 710 mn in FY24, and in 1H25, authorities seized 13,248 illegal items, of which 61% were cigarettes. The number of illegal cigarette sticks increased 38%, with the illegal market share rising from 28% in 2021 to 46% in 2024. (Source : Bisnis Indonesia)