Sampoerna

PT HM Sampoerna Tbk.
Public Company (IDX: HMSP)
Founded 1913
Founder Liem Seeng Tee
Headquarters Surabaya, Indonesia
Key people
 Paul Norman Janelle, President Director
John Gledhill, President Commissioner
Eunice Carol Hamilton, Vice President Commissioner
Products Mild cigarettes, Kreteks
Revenue Rp 22,006.97 billion (Q3 2007)
Rp 3,002.5 billion (Q3 2007)
Parent Philip Morris International
Website www.sampoerna.com

PT Hanjaya Mandala Sampoerna Tbk. (IDX: HMSP) is an Indonesian tobacco company. Sampoerna is one of the largest Indonesian tobacco company, ahead of Bentoel Group and Nojorono.[1] It produces kretek-type clove cigarettes. Its most popular brand is Sampoerna 'A' Mild, a filter cigarette in white paper. Sampoerna reported 2006 net sales of 29.55 trillion rupiah (approximately $3.22bn using the February 22, 2008 exchange rate) resulting in 3.53 trillion rupiah net income.

In May, 2005, Philip Morris International, at that time a subsidiary of the Altria Group, completed the acquisition of 97.95% of the company.[2] Sampoerna reported 2006 net sales of 29.55 trillion rupiah (approximately $3.22bn using the February 22, 2008 exchange rate) resulting in 3.53 trillion rupiah net income. A block of approximately 40% of the outstanding stock was sold by the controlling Sampoerna family, especially by Putera Sampoerna, and other insiders in a negotiated transaction and the remaining shares were purchased in a tender offer. The series of transactions valued the company at approximately $5.2 billion. The investment in Sampoerna represented a strategic move for Altria. Philip Morris International was spun off from Altria in 2008. Although Marlboro is the most popular Western-style (non kretek cigarette), most Indonesians still smoke kretek cigarettes.

Its most popular brand is Sampoerna 'A' Mild, a filter cigarette in white paper. Although the cigarette is described as mild, it contains similar tar and nicotine levels to Marlboro Red. Sampoerna A Mild produced and introduced in 1988. Along with variations on the Sampoerna Brand (filterless (known as Hijau, or green), menthol, etc.), introduced in 1968 the company's other key brand is "234" (pronounced Dji Sam Soe), an unfiltered cigarette with 39 mg of tar and 2.3 mg of nicotine per stick. Dji Sam Soe is the most premium cigarette in Indonesia. Its retail price per pack is the same with Marlboro Red (20 sticks), whilst 234 is packed 12 sticks.[3]

The company was founded in 1913 by Liem Seeng Tee, a Chinese Indonesian who immigrated to Surabaya from the province of Fujian, in China. In the 1930s, he adopted the Indonesian name Sampoerna meaning "perfection" as his family name, thus becoming the company's namesake. Sampoerna produces Dji Sam Soe in 1913, Sampoerna A Hijau in 1968 and Sampoerna A Mild in 1988.

HM Sampoerna's current President Director is Paul Norman Janelle, as of August 1, 2012. Janelle’s previous position was president commissioner.[4][5] He was the Company's Director from 2009 to 2010 and President Commissioner from March 9, 2011, to August 1, 2012. He joined Philip Morris International Inc. in 1991 and he holds Bachelor of Science and Bachelor of Business Administration from University of Ottawa, as well as a Masters of Business Administration from Webster University.[6] John Gledhill was HM Sampoerna's President Director from April 1, 2009 - August 1, 2012.

At the end of May 2014, Sampoerna closed Lumajang and Jember factories and laid off 4,900 employees due to the decline in hand made kretek cigarette sales due to consumers' move to buy machine-made kretek cigarettes.[7]

Sampoerna in the news

Cigarette manufacturer PT Hanjaya Mandala Sampoerna announced on Wednesday, July 18, 2012, that it obtained approval from shareholders to appoint a new president director. Paul Norman Janelle is the new president director, replacing John Gledhill. Prior to the appointment, Janelle’s previous position was president commissioner, a position that will be held by Gledhill after the decision becomes effective on August 1, 2012.[4]

On November 5, 2010, employees and volunteers of Sampoerna set up a smoke-free zone rescue camp in Central Java after the eruption of Mount Merapi. Philip Morris company paid for the camp, which was swarmed with 4-wheel drive vehicles and staffers covered with the company logo. Local residents and evacuees were unsure to whether this was a marketing campaign for the companies. During the week of the volcanic explosion, police and military officers tore down advertisements and banners of political parties that have appeared in the evacuation zone, they were erected without any permits, according to local officials. However, representatives of the companies claim that their efforts were entirely altruistic, adding that their companies are only interested in providing assistance to people affected by the volcano.[8]

Products

Local

Global

Notes

  1. ↑ http://www.smokernewsworld.com/british-american-tobacco/
  2. ↑ "Indonesia-Investments.com:HM Sampoerna company profile". March 25, 2014.
  3. ↑ "Altria to Boost Output of Indonesia's High-Tar Clove Cigarettes". Bloomberg. 16 March 2005.
  4. 1 2 http://www.thejakartapost.com/news/2012/07/19/hm-sampoerna-appoints-new-boss.html
  5. ↑ http://www.sampoerna.com/id_id/about_us/investor_information/corporate_governance/pages/board_of_commissioners.aspx
  6. ↑ http://markets.ft.com/Research/Markets/Tearsheets/Directors-and-dealings?s=HMSP:JKT
  7. ↑ "Tutup Dua Pabrik, PT HM Sampoerna PHK 4.900 Karyawan". May 16, 2014.
  8. ↑ http://www.npr.org/templates/story/story.php?storyId=131094364

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