GGRM — Focus on SKT growth amid market challenges

GGRM — Focus on SKT growth amid market challenges Gudang Garam (GGRM) remains optimistic about the domestic cigarette market despite challenges such as weak consumer purchasing power and increasing excise duties. GGRM reported an 11% yoy growth in sales of its hand-rolled clove cigarettes (SKT) in 1H24, even as other product segments declined. To support this growth, GGRM has expanded its SKT production capacity through partnerships with rolling partners. Despite these efforts, GGRM faces pressure from higher excise taxes and competition from more affordable brands, leading to a drop in overall sales volume from 114.4 bn to 106 bn cigarettes in June 2024. (Source : Investor Daily)