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Consumer Non-Durables

PT Gudang Garam Tbk

Company Background

Gudang Garam is one of Indonesia's leading cigarette manufacturers, best known for its kretek clove cigarettes. But its share of the domestic market has steadily declined over the last decade to around 20%, as the company comes under pressure from rivals such as HM Sampoerna, which was acquired by Philip Morris in 2005.

The company also faces regulatory headwinds. The government frequently raises cigarette taxes, and now requires producers to put warning labels on packages to alert people to the dangers of smoking.

Surya Wonowidjojo, a Chinese Indonesian businessman, founded Gudang Garam in 1958. The success of his business made him and his family among wealthiest people in Indonesia. His son Susilo became president in 2009. Several family members sit on the board of directors and serve as commissioners. Less than a third of Gudang Garam's shares are publicly traded.

In addition to its core cigarette business, the company owns a media company and a charter airline.

Business Summary

PT Gudang Garam Tbk engages in the manufacture and trade of cigarettes. The company operates through the following segments: Cigarettes, Paperboard, and Others. It produces clove cigarettes including low-tar and low-nicotine variants, and the traditional hand-rolled kretek. The company was founded by Surya Wonowidjojo on June 26, 1958 and is headquartered in Kediri, Indonesia.

Financial Highlights

Dec 2018 IDRUSD
Revenue35,626.22B2,502.40M
Gross Profit18,075.87B1,269.66M
Operating income11,093.27B779.19M
Income before tax10,479.24B736.06M
Net income7,791.82B547.30M
EBITDA13,358.00B938.27M
Diluted EPS4,049.610.28
Dividends Per Share2,6000.18
Total Assets69,097.21B4,805.09M
Total liabilities23,963.93B1,666.47M
Total equity45,133.23B3,138.61M
Operating cash flow11,224.70B788.42M
Currency in IDRCurrency in USD

Historical Data

 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 29,954.73B 32,684.55B 33,671.85B 33,685.30B 35,626.22B
Gross Profit 13,084.61B 15,077.55B 16,110.67B 17,658.84B 18,075.87B
Operating income 8,573.72B 9,906.24B 9,972.31B 11,118.63B 11,093.27B
Income before tax 7,254.71B 8,635.27B 8,931.13B 10,436.51B 10,479.24B
Net income 5,405.73B 6,435.65B 6,677.08B 7,753.64B 7,791.82B
EBITDA 10,067.05B 11,653.81B 12,057.88B 13,362.62B 13,358.00B
Diluted EPS 2,810 3,345 3,470 4,030 4,049.61
Dividends Per Share 800 2,600 2,600 2,600 2,600
Total Assets 58,234.27B 63,505.41B 62,951.63B 66,759.93B 69,097.21B
Total liabilities 25,099.87B 25,497.50B 23,387.40B 24,572.26B 23,963.93B
Total equity 33,000.15B 37,900.08B 39,487.01B 42,171.08B 45,133.23B
Operating cash flow 1,657.77B 3,200.82B 6,937.65B 8,204.57B 11,224.70B
 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 2,524.88M 2,439.64M 2,531.64M 2,517.24M 2,502.40M
Gross Profit 1,102.90M 1,125.42M 1,211.29M 1,319.61M 1,269.66M
Operating income 722.67M 739.42M 749.77M 830.87M 779.19M
Income before tax 611.49M 644.55M 671.49M 779.90M 736.06M
Net income 455.64M 480.37M 502.02M 579.41M 547.30M
EBITDA 848.55M 869.86M 906.58M 998.56M 938.27M
Diluted EPS 0.23 0.24 0.26 0.30 0.28
Dividends Per Share 0.06 0.19 0.19 0.19 0.18
Total Assets 4,702.00M 4,606.84M 4,672.60M 4,920.57M 4,805.09M
Total liabilities 2,026.63M 1,849.65M 1,735.93M 1,811.11M 1,666.47M
Total equity 2,664.52M 2,749.37M 2,930.93M 3,108.24M 3,138.61M
Operating cash flow 139.73M 238.91M 521.61M 613.11M 788.42M

Valuation Measures

Dec 2018
PER20.65
ROA11.47%
ROE17.84%
Operating margin31.13%
Profit margin21.87%

Key executives

  • President Director: Susilo Wonowidjojo
  • Director-Finance: Herry Susianto
  • Director: Buana Susilo
  • Independent Director: Sony Sasono Rahmadi
  • Director: Istata Taswin Siddharta

Shareholders

  • WONOWIDJOJO FAMILY (75.5%)
  • The Vanguard Group, Inc. (0.8%)
  • WONOWIDJOJO JUNI SETIAWATI (0.5%)
  • BlackRock Fund Advisors (0.4%)
  • FIL Investment Management (Singapore) Ltd. (0.4%)
  • PT Schroder Investment Management Indonesia (0.3%)
  • FIL Investment Management (Hong Kong) Ltd. (0.2%)
  • Dimensional Fund Advisors LP (0.2%)
  • PT Batavia Prosperindo Aset Manajemen (0.1%)
  • BlackRock Advisors (UK) Ltd. (0.1%)

Contact Details

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