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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. It operates through the following segments: Cigarettes, Paperboard, and Others. It offers 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 2019 IDRUSD
Revenue110,523.81B7,815.50M
Gross Profit22,158.05B1,566.86M
Operating income14,789.99B1,045.84M
Income before tax14,487.73B1,024.47M
Net income10,880.70B769.41M
EBITDA17,319.57B1,224.72M
Diluted EPS5,654.990.39
Dividends Per Share00
Total Assets78,647.27B5,665.20M
Total liabilities27,716.51B1,996.50M
Total equity50,930.70B3,668.69M
Operating cash flow11,174.40B790.17M
Currency in IDRCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 32,684.55B 33,671.85B 33,685.30B 35,626.22B 110,523.81B
Gross Profit 15,077.55B 16,110.67B 17,658.84B 18,075.87B 22,158.05B
Operating income 9,906.24B 9,972.31B 11,118.63B 11,093.27B 14,789.99B
Income before tax 8,635.27B 8,931.13B 10,436.51B 10,479.24B 14,487.73B
Net income 6,435.65B 6,677.08B 7,753.64B 7,791.82B 10,880.70B
EBITDA 11,653.81B 12,057.88B 13,362.62B 13,358.00B 17,319.57B
Diluted EPS 3,345 3,470 4,030 4,049.61 5,654.99
Dividends Per Share 2,600 2,600 2,600 2,600 0
Total Assets 63,505.41B 62,951.63B 66,759.93B 69,097.21B 78,647.27B
Total liabilities 25,497.50B 23,387.40B 24,572.26B 23,963.93B 27,716.51B
Total equity 37,900.08B 39,487.01B 42,171.08B 45,133.23B 50,930.70B
Operating cash flow 3,200.82B 6,937.65B 8,204.57B 11,224.70B 11,174.40B
 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 2,439.64M 2,531.64M 2,517.24M 2,502.40M 7,815.50M
Gross Profit 1,125.42M 1,211.29M 1,319.61M 1,269.66M 1,566.86M
Operating income 739.42M 749.77M 830.87M 779.19M 1,045.84M
Income before tax 644.55M 671.49M 779.90M 736.06M 1,024.47M
Net income 480.37M 502.02M 579.41M 547.30M 769.41M
EBITDA 869.86M 906.58M 998.56M 938.27M 1,224.72M
Diluted EPS 0.24 0.26 0.30 0.28 0.39
Dividends Per Share 0.19 0.19 0.19 0.18 0
Total Assets 4,606.84M 4,672.60M 4,920.57M 4,805.09M 5,665.20M
Total liabilities 1,849.65M 1,735.93M 1,811.11M 1,666.47M 1,996.50M
Total equity 2,749.37M 2,930.93M 3,108.24M 3,138.61M 3,668.69M
Operating cash flow 238.91M 521.61M 613.11M 788.42M 790.17M

Valuation Measures

Dec 2019
PER9.37
ROA14.72%
ROE22.65%
Operating margin13.38%
Profit margin9.84%

Key executives

  • President Director: Susilo Wonowidjojo
  • Director-Finance: Herry Susianto
  • Director: Buana Susilo
  • Independent Director: Sony Sasono Rahmadi
  • Secretary & Director: Heru Budiman

Shareholders

  • WONOWIDJOJO FAMILY (75.5%)
  • The Vanguard Group, Inc. (0.8%)
  • WONOWIDJOJO JUNI SETIAWATI (0.5%)
  • Eastspring Investments (Singapore) Ltd. (0.5%)
  • BlackRock Fund Advisors (0.4%)
  • FIL Investment Management (Singapore) Ltd. (0.3%)
  • Brandes Investment Partners LP (0.3%)
  • PT Schroder Investment Management Indonesia (0.3%)
  • Dimensional Fund Advisors LP (0.2%)
  • Vontobel Asset Management, Inc. (0.1%)

Contact Details

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