JAKARTA – PT HM Sampoerna Tbk. (Sampoerna/IDX: HMSP) today announced its financial performance for the nine-month period ending 30 September 2025. Amidst ongoing national economic challenges, Sampoerna successfully maintained its position as the market leader in Indonesia’s tobacco industry through a cross-segment portfolio strategy designed to meet the diverse and evolving preferences of adult consumers.
As of Q3 2025, Sampoerna recorded a 30.9% market share with sales volume reaching 59.4 billion sticks. This achievement reflects the company’s competitiveness and resilience in navigating various challenges.
From a financial standpoint, Sampoerna posted net revenue of IDR 83.7 trillion, down 5.3% compared to the same period last year, IDR 88.5 trillion. Net profit was recorded at IDR 4.5 trillion, a decline of 13.7% year-on-year. However, this performance shows improvement compared to the first half of 2025, when net profit dropped 36% year-on-year. The decline was primarily driven by weakened purchasing power among adult consumers, pushing them toward lower-priced products (downtrading) and illegal cigarettes.
“In the midst of ongoing industry challenges and dynamics, Sampoerna remains consistent in executing its business strategy and continuing to innovate to strengthen product quality and its cross-segment portfolio, both in conventional cigarette segments and smoke-free products. We are also strengthening our organization through human capital development to enhance competitiveness and position ourselves as one of Philip Morris International’s (PMI) talent hubs,” said Sampoerna President Director Ivan Cahyadi during the Public Exposé in Jakarta.
“In addition to our continuous efforts, government support is a key factor in maintaining the sustainability of the legal industry amid current challenges. We highly appreciate the Government’s decision to maintain the same excise rates this year and next year. This policy, together with law enforcement against illegal cigarettes, provides room for the legal tobacco industry to survive, safeguard state revenue, and support the national economy,” he added.
Multi-Category Strategy: Sustaining Leadership Through Innovation and Consistency
Sampoerna continues to strengthen its leadership through cross-segment portfolio innovation. A Mild, Magnum, and Marlboro reinforce Sampoerna’s leadership in the Machine-Made Kretek (SKM) segment, while Dji Sam Soe and Sampoerna Kretek position the company at the forefront of the Hand-Rolled Kretek (SKT) segment. Leadership across these segments reflects the strength of Sampoerna’s multi-category portfolio.
As part of its industry transformation, Sampoerna continues driving innovation in the smoke-free product category, offering better alternatives for adult consumers through portfolios such as IQOS, VEEV, ZYN, and BONDS by IQOS. Initiatives include the launch of BLENDS heated tobacco sticks, the new TEREA Riviera Pearl variant, and expanded BONDS distribution in major cities across Indonesia. These efforts have also positioned Sampoerna as the market leader in the smoke-free product segment.
“Everything we do in this transformation focuses on implementing a cross-segment portfolio strategy that prioritizes innovation to meet adult consumer preferences. At every step, Sampoerna upholds the values that have shaped the company’s 112-year journey, while continuously creating sustainable economic and social value for Indonesia through initiatives that support the economic empowerment of communities,” Ivan explained.
Economic Impact and Support for Strengthening The People’s Economic Independence
Sampoerna continues to create added value across the entire value chain through various economic empowerment initiatives. Since becoming part of PMI in 2005, Sampoerna has strengthened its contribution to the national economy. Today, Sampoerna’s operations employ more than 90,000 workers, both directly and indirectly, through nine production facilities in Java and 43 Third Party Operators (TPOs) owned and operated by cooperatives and local entrepreneurs. In the upstream sector, Sampoerna partners with more than 19,500 tobacco and clove farmers with guaranteed purchasing schemes.
According to a 2025 Kompas Research and Development (Litbang) study, Sampoerna’s economic activities generate not only direct benefits for employees, farmers, and business partners but also indirect economic impacts valued at IDR 204.1 trillion per year, equal to roughly 1% of Indonesia’s Gross Domestic Product (GDP). This impact is reflected in a multiplier ratio of 1.7 times, in which every IDR 1,000 generated by Sampoerna’s business activities stimulates up to IDR 1,700 in economic value.
Human resource development remains a key pillar in strengthening community economic independence. Through the “Sampoerna untuk Indonesia” sustainability program, the company implements economic empowerment initiatives, entrepreneurship training, financial literacy programs, and digitalization support.
The flagship program Sampoerna Retail Community (SRC) has empowered more than 250,000 grocery stores across Indonesia, with 90% of them digitized through the AYO by SRC ecosystem. According to Kompas Gramedia Research, total SRC store turnover reached IDR 263 trillion—equivalent to 11.36% of the 2022 National Retail GDP. To support government programs, SRC has partnered with Himbara banks, and serves as a strategic partner of BULOG, PT POS Indonesia, and Telkomsel, providing communities with easier access to products and public services.
Additionally, the Sampoerna Entrepreneurship Training Center (SETC) has trained more than 97,000 participants across Indonesia. Over 1,600 MSMEs have received ongoing mentorship, with 200 MSMEs successfully entering export markets, and around 80% undergoing digital transformation.
To further support human resource development, this year Sampoerna launched the Sampoerna Karya Bangsa (SKB) program as a platform for skills development and vocational training. The program aims to cultivate independent entrepreneurs and skilled workers capable of contributing to national economic independence.
With a solid foundation, an innovative multi-category portfolio, and integrated sustainability principles across its operations, Sampoerna affirms its commitment to ensuring that growth goes hand-in-hand with societal progress.
“With a spirit of innovation and grounded in the Three-Hand Philosophy, Sampoerna’s transformation is not only aimed at business growth but also at becoming a partner in national development and contributing to the realization of inclusive and sustainable economic independence,” Ivan concluded.