Publicly listed cement producer PT Indocement Tunggal Prakarsa (INTP) has managed to record strong sales figures in June after initially experiencing negative growths throughout 2Q-2020, mainly thanks to the shift from the Lebaran period and the loosening of large scale social distancing measures (PSBB).
INTP sold 1.31 million tonnes of cement in June 2020, up 29.3% (YoY) from 1.01 million tonnes during June last year. Furthermore, the company's sales in June were 59.5% (MoM) higher than those of 0.82 million tonnes sold in May. The company has sold around 7.09 million tonnes of cement in the first semester of 2020, down 8.2% from 7.72 million tonnes in 6M-2019.
"The major floods that occurred in the Greater Jakarta area in January and the PSBB measures that started in March have negatively affected our sales volume. These externalities were beyond our control," says INTP Corporate Secretary Antonius Marcos in a recent statement.
However, Antonius did express his optimism that INTP will book better sales results at the end of this year's second semester. According to him, the relaxation of PSBB and the end of the Lebaran holiday period meant that many construction projects would resume from July onwards.
Domestic cement consumption in June 2020 reached 4.98 million tons, up 32.3% (YoY), and 58.3% (MoM). From the total, INTP kept a market share of 26.3% with 1.31 million tonnes in June this year and 26.9% with 1.01 million tonnes in June 2019.
"If we compare INTP's sales this semester with last year's, the company suffered an 8.6% sales decline in Java from 5.62 million tons in 1H-2019 to 5.14 million tonnes this June. On the other hand, INTP's sales contribution from Sumatra had risen from 0.70 million tonnes in last year's first semester to 0.75 million tonnes this year. INTP is expected to earn a bigger sales contribution from Sumatra due to ongoing projects such as the Trans Sumatra toll road and the operations of cement terminals in Lampung and Palembang since 2018," says Danareksa Sekuritas analyst Maria Renata in a report.
INTP earned revenue of Rp 3.36 trillion in 1Q-2020, down 10% from Rp 3.72 trillion in the same period last year. Despite the revenue decline, the company enjoyed a 0.8% net income growth from Rp 396.94 billion in 1Q-2019 to 400.43 billion this year.