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SIARAN PERS:
Sampoerna Reports Solid Third Quarter Results
Jakarta, 24 October 2016– PT HM Sampoerna Tbk. (Sampoerna/IDX: HMSP) reported its third quarter 2016 market share at 34.5 percent, up 0.4 percentage points compared to the second quarter. This share growth was driven by strong performance in the full flavor machine-made kretek segment. For the first nine months of this year, the company reported net revenues (excluding excise taxes) of Rp 31.8 trillion, up by 4.9 percent from Rp 30.3 trillion from the same period in 2015.
In the third quarter of 2016, Sampoerna maintained its segment share leadership positions, with 30.1 percent share of the machine-made kretek segment, 38.2 percent share of the hand-rolled kretek segment and 79 percent share of the white cigarette segment.
Paul Ja elle, P eside t Di e to of “a poe a said, We are proud that “a poer a re ai s I do esia’s market leader. We have been able to achieve this success due to our strong fundamentals, the trust of our partners and stakeholders, and the dedication and hard work of our employees. While the industry has recently faced a difficult environment, we are confident in our continued success through our strong brand portfolio, including our leading brands: A Mild, Dji Sam Soe and Marlboro.
Sampoerna anticipates an overall industry volume decline of 1 to 2 percent in 2016, primarily driven by a 15 percent weighted average excise tariff increase. Continued pressure on the industry is expected due to an additional weighted average industry-wide excise tariff increase of approximately 10 percent, effective as of January 1, 2017.
This pressure will likely result in further declines in the hand-rolled segment as adult smokers continue their shift away from hand-rolled to machine-made k etek p odu ts. I the thi d ua te of , “a poe a’s hand-rolled kretek market share dropped to 6.6 percent, down 0.8 percentage points from the same period in 2015.
“a poer a is o itted to the hand-rolled kretek segment and we are taking actions to stabilize the decline, including innovations to enhance our Dji Sam Soe and Sampoerna Kretek brands, offering our hand-rolled produ ts at o petitive pri es a d i vesti g i the ra ds through arketi g a d sales support, Mr. Janelle commented.
Despite the soft performance in the hand-rolled kretek portfolio, Sampoerna continued its momentum in the full-flavor machine-made kretek segment, notably following the geographic expansion of U Bold in 2016. The company further strengthened its full-flavor machine-made kretek portfolio with the September launch of Marlboro Filter Black in 25 cities across Indonesia.
Adult smokers in Indonesia recognize kretek as a genuine Indonesian product. They also recognize Marlboro as a true international brand. With the launch of Marlboro Filter Black, adult smokers in Indonesia are now able to enjoy the best of both these worlds. While it is early in the launch process, so far we have seen encouraging results. We strongly believe that this offer will set the standard for the full-flavor machine-made kretek segment, o luded M . Ja elle.
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About PT HM Sampoerna Tbk. (Sampoerna)
Founded in 1913, Sampoerna -- a subsidiary of PT Philip Morris Indonesia and an affiliate Philip Morris International -- is the leading
I do esia to a o o pa , fo usi g p i a il o the p odu tio a d sale of lo e iga ettes. The Co pa ’s a d po tfolio
includes Dji Sam Soe and Sampoerna A in the premium price segment and Sampoerna Kretek and U Mild in the below premium price segment. The Company also distributes Marlboro, the o ld’s est-selling international brand.
Sampoerna operates seven production facilities in Java and partners with 38 Third Party Operators, employing -- directly and indirectly -- a total of approximately 70,000 employees in 2015, mostly in the production of hand-rolled clove cigarettes. Sampoerna distributes its products via more than 100 sales and distribution area offices across Indonesia.
“a poe a as I do esia’s la gest ta pa e i , ith total ta payments to the Government of approximately Rp 67.2 trillion.
Sampoerna is the largest company by market capitalization on the Indonesian Stock Exchange, where it trades under the ticker
s ol HM“P.
For further information, please visit: www.sampoerna.com
Media Contact: Michael Reza Say
Communications Manager PT HM Sampoerna Tbk. Ph. +62 21 515 1234 Fax. +62 21 515 2234
