Profile

Industry Sector Consumer Goods Industry
Industry Sub Sector Tobacco Manufacturers
Established 27 March 1905
Listed 15 August 1990
Listed Company Code HMSP
Listed Shares 116,318,000,000 
Dividend Yes
Major Shareholders (>5%) Philip Morris Indonesia (92.50%)
Key Subsidiaries Perusahaan Dagang dan Industri Panamas
Sampoerna Printpack
Handal Logistik Nusantara
Asia Tembakau
Sampoerna Air Nusantara
Union Sampoerna
Taman Dayu Dinamika

Stock Quote HM Sampoerna - HMSP:

Visible in the chart below HM Sampoerna conducted a 25-for-1 stock split in June 2016 in a bid to boost liquidity

Business Summary

HM Sampoerna is the number one cigarette brand in Indonesia and the world's largest kretek (clove) cigarette manufacturer. It is the producer of some of the most well-known kretek cigarette brands, such as Sampoerna Hijau, Sampoerna A Mild, and the legendary “King of Kretek” Dji Sam Soe. On 18 May 2005, the company was acquired by Philip Morris International, thus becoming part of one of the world’s largest tobacco companies. Today, the company also distributes Marlboro, the world’s best-selling cigarette brand, in Indonesia.

Sampoerna sells and distributes cigarettes through a total of 106 sales offices on the islands of Sumatra, Java, Bali and Kalimantan as well as in Eastern Indonesia.

Sales & Distribution Locations HM Sampoerna:

The kretek-type cigarettes are tremendously popular among Indonesia's population. It is the favorite cigarette of Indonesian cigarette consumers. About two-thirds of Indonesian men smoke, and are thus known as the world's top smokers. The percentage of Indonesian women that smoke is small (approx. five percent) as it is considered negative for a woman to smoke. Recently, however, there has been a large increase in female smokers among the country's middle class in the urban areas.

The company conducted a successful rights issue in October 2015, which was the largest-ever secondary placement in Southeast Asia and the largest equity offering in Indonesia since 2008.

HM Sampoerna's Financial Highlights:

     2009    2010    2011    2012
   2013    2014    2015    2016
Net Sales  38,972  43,382  52,857  66,626  75,025  80,690  89,069  95,467
Gross Profit
 11,228  12,656  15,196  18,507  20,071  20,500  21,764  23,855
Net Profit
  5,087   6,421   8,065   9,945  10,818  10,181  10,355  12,530
Net Operating
Income
  7,265   8,711  10,617  13,350  14,600  13,805  14,048  16,020
Profit before
Income Tax
  7,213   8,748  10,911  13,383  14,510  13,718  13,933  17,011
Total Assets
 17,716  20,525  19,330  26,247  27,405  28,381  38,011  42,508
Total Liabilities   7,250  10,310   9,027  12,939  13,250  14,883   5,995   8,333
Earnings per
Share¹ ²
    n.a     n.a     n.a     90     98     92     93    110
Dividend per
Share¹
    n.a     n.a     n.a   7,670   9,945  10,651   8,801   2,225

in billion IDR rupiah, unless stated otherwise
¹ in IDR rupiah
² adjusted to stock split

Source: HM Sampoerna, Annual Report 2016

Overview of the Tobacco Industry in Indonesia

Indonesia has a large and diverse tobacco consumer market with a significant percentage of adult smokers. Approximately 67 percent of Indonesian men and 5 percent of Indonesian women are smokers (Indonesia contains a total population of over 250 million people). Raw materials are mostly sourced domestically and in combination with cheap labour it makes production costs relatively low. As such, the price of a package of cigarettes in Indonesia is cheap. This has also been the reason why Indonesia's tobacco industry was not touched by the recent global economic downturn. Indonesians continue to consume more cigarettes, although exports have declined. However, exports contribute little to Indonesian tobacco producers' sales and profit figures and therefore the declining export numbers are not an issue.

Read more: Overview of Indonesia's Tobacco & Cigarette Industry

The most popular cigarettes in Indonesia are kretek cigarettes. About 85 percent of all smokers in Indonesia prefer kretek cigarettes to white cigarettes. Kretek are clove cigarettes that consist of tobacco (70 percent) and ground cloves, clove oil and other additives (30 percent). The kretek cigarette is a trademark of Indonesia.

Issues that can curb expansion of the tobacco industry in Indonesia are government policies. The government regularly decides to increase taxes or excises on cigarettes. Moreover, the government issued new rules that order tobacco companies to put various warning labels on cigarette packages, aimed at warning consumers about its health effects. In other words, it aims to make cigarettes less attractive. 

Lastly, weak clove harvests in Indonesia can cause temporarily high production costs (as happened in 2012).

There are four Indonesian tobacco companies that are listed on the Indonesia Stock Exchange (IDX):

Gudang Garam
HM Sampoerna
Bentoel Internasional Investama
Wismilak Inti Makmur

Both Gudang Garam and HM Sampoerna are among the companies with the largest market capitalization in Indonesia.

Location

Contact Details

Head Office:
Jalan Rungkut Industri Raya No. 18
Surabaya - 60293

Jakarta Representative Office:
One Pacific Place, Floor 18
Sudirman Central Business District (SCBD)
Jalan Jenderal Sudirman Kav. 52 -53
Jakarta - 12190
www.sampoerna.com