JAKARTA, May 27, 2025 – PT HM Sampoerna Tbk. (Sampoerna/IDX: HMSP) today announced its 2024 fiscal year performance at the Annual General Meeting of Shareholders (AGMS), recording net revenue of IDR 117.9 trillion, a 1.6% increase from the previous year. Sampoerna successfully maintained its leadership in Indonesia’s tobacco industry with a market share of 27.4% and sales volume reaching 80.8 billion sticks. Amid current industry dynamics, Sampoerna still posted a net profit of IDR 6.6 trillion, although this represents a 17.9% decline from the previous year.
The national tobacco industry continues to face significant pressure due to aggressive fiscal policies in recent years, including double-digit excise tax increase that outpaced inflation in 2024. These have accelerated the trend of downtrading to lower-priced products and increased the circulation of illegal cigarettes.
Nevertheless, Sampoerna remains committed to being part of the solution for inclusive and sustainable economic development, through both capital-intensive investments focused on innovation and technology, and labor-intensive investments in hand-rolled kretek cigarettes (SKT), which employ tens of thousands of workers. In 2024, Sampoerna added two SKT production facilities in Tegal and Blitar, and five Third-Party Operators (TPOs) in East and Central Java. Currently, Sampoerna operates 9 production facilities and 43 TPOs owned and operated by cooperatives and local entrepreneurs across various cities and regencies across Java. Sampoerna’s overall business and operational activities employ a workforce of more than 90,000 people, both directly and indirectly.
Sampoerna’s commitment to innovation is realized through the presence of smoke-free products, which scientific research has shown to be a better alternative for adult smokers who would otherwise continue using tobacco or nicotine products. Sampoerna has established a production facility for innovative smoke-free tobacco products, which has been operational since 2023. This facility supplies both the domestic market and export markets in the Asia-Pacific region. Overall, Sampoerna, together with PT Philip Morris Indonesia (PMID), exports products to 35 markets, including both innovative smoke-free tobacco products and conventional cigarettes.
Sampoerna also recorded significant success in its smoke-free product portfolio by delivering 1.2 billion units in 2024 and a market share of over 5% in Urban Jakarta City in Q4 2024. This was achieved through strategic initiatives in heated tobacco products (IQOS) and electronic cigarettes (VEEV) across 20 major cities in Indonesia, as well as oral smoke-free products (ZYN) with exclusive distribution in Bali. In Q4 2024, the Company expanded its smoke-free portfolio by launching BONDS by IQOS with special BLENDS tobacco sticks, initially available in Bandung and expanded to 20 major cities in May 2025.
In Q1 2025, the Company maintained its leadership in the national tobacco industry with a market share of 26.8% and sales volume of 20.4 billion sticks, up 0.6% from the same period the previous year. Financially, Sampoerna recorded a net profit of IDR 1.9 trillion, resulting from effective strategy implementation.
Growth was also reflected in the smoke-free products segment, which reached 5% in Urban Jakarta City, up 1.6 pp from Q1 2024. To strengthen this momentum, in April 2025, Sampoerna launched two new TEREA variants, which are Black Purple and Black Ruby, to offer more options for adult smokers seeking better alternatives.
Through its smoke-free products, Sampoerna partners with over 600 local MSMEs in 20 cities across Indonesia, creating more than 1,300 new jobs and involving over 18,000 members of the Sampoerna Retail Community (SRC) in the smoke-free products distribution ecosystem.
“Our strategy focuses on accelerating sustainable multi-category growth through smoke-free products while maintaining leadership in the conventional cigarette segment. Our commitment to innovation and collaboration with stakeholders, including thousands of MSMEs entrepreneurs, positions Sampoerna strategically to create long-term value for our key stakeholders, which include adult consumers; employees, business partners, and shareholders; and the society at large,” said Sampoerna President Director Ivan Cahyadi at the AGMS (May 27, 2025).
With the spirit of growing with Indonesia, Sampoerna reaffirms its commitment to driving sustainable national economic progress. In addition to strengthening Company performance through increased labor-intensive investment and portfolio innovation, especially in smoke-free products, Sampoerna actively empowers Micro, Small, and Medium Enterprises (MSMEs), which are the backbone of the national economy. This initiative is carried out under the “Sampoerna for Indonesia” Sustainability Umbrella Program.
As part of this commitment, in July 2024, Sampoerna held the "Pesta Rakyat UMKM untuk Indonesia" (MSME Festival for Indonesia) in collaboration with the Indonesian Chamber of Commerce and Industry (Kadin Indonesia), bringing together more than 1,250 MSMEs. This event supports the Indonesian Government’s program to accelerate inclusive and sustainable transformation through empowerment and export promotion of MSMEs. It also demonstrates real collaboration and synergy among stakeholders in developing MSMEs through a multi-helix model involving government, business associations, the private sector, academia, and the society at large.
“Sampoerna is committed to continuously empowering MSMEs as the foundation of a people-based economy. Through the Sampoerna Retail Community (SRC) and Sampoerna Entrepreneurship Training Center (SETC), we have empowered more than 347,000 MSMEs across Indonesia,” said Ivan.
At the AGMS, Sampoerna announced the distribution of dividends from the 2024 fiscal year profit totaling more than IDR 6.5 trillion from the Company’s retained earnings, with a dividend payout ratio of 98.4% or IDR 56.2 per share, reflecting the Company’s commitment to shareholders.
New President Commissioner and Vice President Commissioner
Furthermore, at this AGMS, shareholders approved the appointment of Paul Janelle as Sampoerna’s new President Commissioner, succeeding John Gledhill, and the appointment of Mindaugas Trumpaitis as the Company’s Vice President Commissioner, effective upon the closing of the AGMS on May 27, 2025. This was part of the 2025 AGMS agenda, along with the announcement of changes to the meeting agenda, which had been communicated to shareholders via the Indonesia Stock Exchange (IDX) and Financial Services Authority (OJK) websites, and through meeting invitations issued on April 17, May 2, and May 5, 2025.
“We congratulate Paul Janelle on his new role and welcome Mindaugas Trumpaitis to the Board of Commissioners. Their leadership and global experience will strengthen corporate governance and support Sampoerna’s long-term transformation strategy,” Ivan concluded.
***
About PT HM Sampoerna Tbk. (Sampoerna)
Founded in 1913, Sampoerna – an affiliate of Philip Morris International Inc. – is a leading tobacco company in Indonesia. The Company’s business activities include manufacturing and trading cigarettes, smoke-free tobacco products, and nicotine-containing products. Sampoerna produces several well-known kretek brands such as Sampoerna A, the legendary “King of Kretek” Dji Sam Soe, and Sampoerna Kretek. Sampoerna also distributes Marlboro brand cigarettes across Indonesia through a long-term distribution agreement with PT Philip Morris Indonesia.
Since its acquisition by Philip Morris International (PMI) in 2005, Sampoerna’s investment value has reached over USD 6.4 billion. Currently, Sampoerna operates nine production facilities in Surabaya, Pasuruan, Probolinggo, Malang, Karawang, Blitar, and Tegal, including a manufacturing facility for smoke-free tobacco products focusing on exports to the Asia-Pacific region and domestic markets. Sampoerna also partners with 43 Third-Party Operators (TPOs) across Java, employ a workforce of more than 90,000 people, both directly and indirectly, mostly in Hand-Rolled Kretek Cigarette production. Sampoerna distributes its products through 105 sales and regional distribution offices across Indonesia.
Under the “Sampoerna untuk Indonesia” Sustainability Umbrella Program, Sampoerna is committed to developing MSMEs through the Sampoerna Retail Community (SRC) and Sampoerna Entrepreneurship Training Center (SETC). Currently, SRC empowers over 250,000 traditional retailers nationwide, with an economic impact reaching IDR 236 trillion per year, equivalent to 11.4% of the 2022 National Retail GDP. Meanwhile, SETC has trained more than 97,000 participants across Indonesia.
Sampoerna is a publicly traded company on the Indonesia Stock Exchange under the ticker code “HMSP.”
For more information, visit our official website at www.sampoerna.com or follow us on social media:
Instagram: https://www.instagram.com/insidesampoerna/
Facebook: https://www.facebook.com/InsideSampoerna/
X: http://x.com/insidesampoerna
YouTube: https://www.youtube.com/@insidesampoerna
Media Contact:
Micko Rustantra
Head of Corporate Communications
PT HM Sampoerna Tbk.
Email: contact@sampoerna.com