Cigarette maker Gudang Garam (GGRM) booked a net profit of Rp7.6 trillion in 2020, which declined 30.3% from Rp10.9 trillion in 2019 due to higher costs. Revenue grew 3.6% year on year (y/y) to Rp114 trillion, but the cost of sales also rose 10.2% to Rp97 trillion. Then gross profit fell 26% y/y to Rp17.4 trillion. The weak purchasing power due to the economic slowdown and the impact of the COVID-19 pandemic would continue to hit cigarette producers.
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