Gudang Garam (GGRM) profit dropped 22% despite the increase in revenue

ILLUSTRATION. Gudang Garam (GGRM) profit dropped 22% despite the increase in revenue.

Reporter: I knew Laoli | Editor: I knew Laoli

KONTAN.CO.ID – JAKARTA. PT Gudang Garam Tbk (GGRM) posted an unsatisfactory profit in the third quarter of 2020. Despite an increase in revenue, GGRM’s profit fell significantly.

Quoting the GGRM financial report on the Indonesia Stock Exchange (IDX) website, Gudang Garam posted a net profit attributable to the owner of the parent entity of IDR 5.67 trillion.

This profit fell 22.09% from the profit for the same period in 2019 which amounted to Rp 7.24 trillion.

The decline in profit occurred even though Gudang Garam recorded a 2.01 percent increase in revenue to Rp 83.37 trillion from Rp 81.72 trillion previously.

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The decline in GGRM’s profit was due to a 6.68% increase in cost of goods sold to Rp 70.39 trillion. Meanwhile, in the third quarter of 2019, it was only IDR 65.98 trillion.

Gudang Garam’s asset value also shrank to IDR 76.92 trillion compared to December 2019 which reached IDR 78.64 trillion.

Gudang Garam’s largest revenue came from sales of machine-made kretek cigarettes, amounting to Rp 76.08 trillion. Then the second largest revenue came from sales of hand-rolled kretek cigarettes with Rp 6.3 trillion and klobot cigarettes at Rp 19.44 billion, cardboard paper at Rp 827.92 billion and others Rp 63 billion.

However Gudang Garam recorded the largest cost of goods from the payment of excise stamps, VAT and cigarette taxes, which reached Rp 58.53 trillion. An increase of 14.89% from the same period in 2019 which amounted to IDR 50.94 trillion.