Indonesia's Gudang Garam net profit down 18 percent on higher costs

JAKARTA, July 31 (AFP) - Indonesian cigarette maker PT Gudang Garam said Thursday its first-half net profit fell 18 percent due to higher costs.

Gudang Garam's first half to June net profit dropped to 911.30 billion rupiah (106 million dollars) from 1.08 trillion a year earlier.

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Sales rose by more than 900 billion rupiah but higher sales costs dragged the company's net profit down.

Cigarette sales in the first six months of the year rose to 11.32 trillion rupiah, or by nearly 10 percent from 10.39 trillion a year earlier.

However, combined sales, general and administration costs rose by more than 13 percent over the six-month period to 9.85 trillion rupiah from 8.67 trillion rupiah.

The cost increase pushed Gudang Garam's operating profit down to 1.47 trillion rupiah from 1.71 trillion rupiah.

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