PT HM Sampoerna Tbk. (Sampoerna/IDX: HMSP) today announced its full-year 2025 performance results at its Annual General Meeting of Shareholders (AGMS), reporting sales volume of 79.4 billion sticks and successfully maintaining its position as a leader in Indonesia’s tobacco industry with a market share of 30.7%.
In line with these achievements, Sampoerna recorded a gross profit increase of 11.2% to Rp20.6 trillion, supported by strategic pricing initiatives amid challenging environment. Net profit remained relatively stable year-on-year at Rp6.6 trillion, reflecting the Company’s strong business fundamentals and consistent execution of its strategic focus.
“Our strategy focuses on innovation and strengthening a product portfolio oriented toward adult consumers to sustain leadership across all segments amid evolving industry dynamics. We also continue to balance business growth with strengthening downstream activities in the tobacco industry while contributing to value creation across the entire value chain,” said Sampoerna President Director Ivan Cahyadi during the 2025 AGMS held in Jakarta on Monday (May 18, 2026).
Indonesia’s economy demonstrated resilience in 2025. However, the tobacco industry continued to face challenges, including sustained pressure on purchasing power, an ongoing downtrading trend toward lower-priced products in Below Volume Tier 1 segments, and an increasing prevalence of illicit cigarettes. These pressures were reflected in the national tobacco industry performance, which recorded an approximate 3% decline in sales compared to the previous year.
The most significant impact has been felt in Volume Tier 1 segment, which is both the largest contributor to employment and a key contributor to excise revenue. The Volume Tier 1 market share has declined significantly, dropping by approximately 22 percentage points over the past six years—from 80% in 2019 to close to 50% as of the First Quarter of 2026. This is also reflected in the Company’s sales volume, which declined by 8.7% in the First Quarter of 2026, with the steepest decrease in the Hand-Rolled Clove Cigarettes (SKT) category, a labor-intensive segment.
“We appreciate the Government’s decision not to increase excise tariffs in 2026 as a strategic step to maintain stability within the tobacco industry. This policy, complemented by the government’s efforts to combat illicit cigarettes, provides room for legal industry players to continue contributing to state revenue and job creation. However, the continued decline in market share in the Volume Tier 1 segment and the need to protect the labor-intensive SKT segment require attention from all stakeholders. With a more conducive business environment, we remain optimistic about strengthening the national economic ecosystem in a sustainable manner,” Ivan added.
Sampoerna’s Support for Labor-Intensive SKT and the National Economy
Sampoerna continues to strengthen its SKT portfolio to support the livelihoods of approximately 70,000 hand-rolling workers—most of whom are women—across six Company-owned production facilities and 43 third party operators, owned and operated by local cooperatives and entrepreneurs across 35 regencies and municipalities in Java.
The urgency of maintaining this segment is underscored by a study conducted by Universitas Airlangga, which found an economic multiplier effect of up to 3.8 times. This indicates that every Rp1,000 in economic activity generated by SKT production facilities has the potential to create Rp3,800 in economic circulation within surrounding communities.
Therefore, strong collaboration and synergy among stakeholders are essential in formulating policies that support the sustainability of the national tobacco industry—particularly the SKT segment—in order to maintain regional economic ecosystems and safeguard tens of thousands of jobs dependent on this sector.
Meanwhile, in supporting national economic growth, Sampoerna continues to create value across its value chain, including partnerships with more than 22,500 tobacco and clove farmers, collaboration with over 1.5 million retail outlets, and the creation of approximately 90,000 jobs in Indonesia through the Company’s business activities. According to a 2025 Litbang Kompas study, Sampoerna’s business activities generate an economic multiplier impact of approximately Rp204.1 trillion annually, equivalent to around 1% of Indonesia’s Gross Domestic Product (GDP), with a multiplier ratio of 1.7 times.
In line with these contributions, the Company continues to strengthen human capital development as a key driver of sustainable growth through various training initiatives, talent development programs, and capacity-building efforts with local MSME entrepreneurs across Indonesia. These include the Sampoerna Retail Community (SRC), launched in 2008, which has supported 250,000 traditional retailers nationwide and generates total annual revenue of Rp251 trillion—equivalent to 9.46% of Indonesia’s national retail GDP in 2025; the Sampoerna Entrepreneurship Training Center (SETC), established in 2007, which has reached more than 108,000 MSME participants; and Sampoerna Karya Bangsa, which runs various capacity-building programs, including the HOPE program with more than 9,000 participants and vocational training initiatives involving over 1,500 participants.
With more than 112 years of experience in Indonesia, Sampoerna continues to strengthen its role as an integral part of the national economy through innovation, sustainability, and the creation of long-term value for all stakeholders.
At the AGMS, Sampoerna also announced the distribution of dividends from its 2025 fiscal year earnings, totaling around Rp6,55 trillion, drawn from retained earnings, with a dividend payout ratio of 99.95% or Rp56.3 per share, reflecting the Company’s commitment to shareholders.
Changes in the Board of Directors
At the AGMS, shareholders approved changes to the composition of the Company’s Board of Directors. The AGMS approved the resignation of Elvira Lianita from her position as Director of the Company, following her appointment to a new role as Vice President Corporate Affairs East & Southeast Asia, Pacific and PMI Global Travel Retail at Philip Morris Asia Limited. The Company extends its appreciation for her contributions during her tenure.
In line with this, the AGMS also approved the appointment of Joy Kartika Widjaja and Virawaty as members of the Board of Directors, as well as Umer Jawaid as Director, replacing Johan Bink, effective upon the closing of the 2026 AGMS.
“These changes in the Board of Directors are part of the Company’s ongoing effort to ensure strong leadership that remains relevant to business dynamics. We extend our gratitude to Ms. Elvira Lianita and Mr. Johan Bink for their dedication and wish Ms. Joy Kartika Widjaja, Ms. Virawaty, and Mr. Umer Jawaid every success in their new roles,” Ivan concluded.