PT Cemindo Gemilang Tbk (CMNT) Turns Net Loss from 2022 into Net Profit of IDR 159 Billion in 2023
Thursday, 28 March 2024
Continuous Financial Growth:
In a challenging year, globally as well as domestically, CMNT managed to record a good performance. Cement volumes sold in Indonesia in 2023 reached all-time highs since the inception of CMNT, recording volume growth of 3%, similar to the growth of the national cement industry in Indonesia for 2023.
FY 2023 Revenues and EBITDA were similar to FY 2022. However, unforeseen machinery breakdowns in 2023 resulted in a nearly 10% decline in clinker production, consequently leading to losses. Despite the production loss, our EBITDA per ton of clinker produced in Indonesia increased by nearly 3% for FY 2023.
Although, for FY 2023, costs across the board for the industry were generally higher, CMNT was able to maintain its GPM and OPM to similar levels of FY 2022.
Our subsidiaries continue to grow in 2023. Chinfon Vietnam succeeded in increasing the volume of export cement sales driven by new market penetration in number of countries; subsequently increasing its EBITDA by 8% in 2023. Other subsidiaries on a combined basis recorded EBITDA of Rp 133 billion or grew nearly 59% compared to FY 2022.
Sustainable Business Growth:
Fostering Sustainable Business Practices, CMNT Wins Climate Action Award from World Cement Association; Being a role model in sustainable practices within the cement industry
Apart from improving financial performance, the Company continues to focus on sustainability aspects. The Company's commitments are validated by winning the Climate Action Award from the World Cement Association in 2023 for business sustainability in implementing various policies to reduce costs and carbon emissions, energy efficiency, use of alternative raw materials, and continuous efforts in developing greener products.
In 2023, the Company has also taken a pioneer step, the first of its kind in the industry, investing in electric heavy equipment to replace several of the Company's fossil fuel-based heavy equipment for operational activities in factories and mine sites. A budgeted investment of around IDR 100 billion has been committed to this effort to be fully operational by 2024. This will not only reduce fuel consumption and save costs but also contribute to reduce the Company's overall carbon emissions.
