GGRM 2015

Company analysis

In 2015 the company attained positive growth in its revenue, although its export revenue declined. Cigarette is the main product of the company, in 2015 its contribution is more than 98 %, and another type of product is paperboard, entertainment and etc. the machine made cigarette is still dominated as its biggest contributor of its revenue, which is 90 % of total sales. Hand rolled clove cigarette is only contributing 8.3 % of total revenue.  

Accordance to annual report, the volume of revenue declined as the economic growth in 2015 was not performed as expectation. The volume of the revenue in 2015 is 78.6 billion bars; it is less than the volume in 2014 which is at 80.6 billion bars. Besides that, the volume of the revenue declined due to weakened purchasing power of consumer. The 7.9 % growth in revenue is occurred due to higher price of product.

In 2104 the company established surya abadi semesta, subsidiary which is expected producing e-cigarette in the future. In 2015 it was not commencing its commercial activities yet. Almost of the kretek market declined in its volume of sales except SKM full flavor which rose 8.9 %. Government has made tight policy for cigarette industry either in its excise duty or in its advertising policy.

In 2015 the company launched new product, Surya Pro Mild brand. This product may be as the rejuvenation of Surya Pro series which its life cycle may be possibly at maturity. It consider to not add its capacity of production yet at recent.