• Net profit slides 11.5%
  • Operating profit down 24.8%
  • Net sales grow 8.7%
Indofood said the performance was affected by a weaker performance in its agribusiness

Indofood said the performance was affected by a weaker performance in its agribusiness

Indonesian noodle maker Indofood CBP Sukses Makmur has recorded a decline in first-quarter profit as earnings were hit by a weak performance in its agribusiness unit.

Earnings in the three months to the end of March slid 11.5% to RP722.4m (US$74.3m), while income from operations declined 24.8% to RP1.34trn. Operating margin dropped to 10.4% from 15% last year on lower gross profit and higher operating expenses.

CEO Anthoni Salim said the first quarter performance was "greatly affected by weaker performance of our agribusiness group mainly due to lower CPO [crude palm oil] and rubber prices, as well as higher costs".

Consolidated net sales grew 8.7% to RP12.86trn, primarily driven by volume growth in all divisions within the group.

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  • Consolidated net sales grew 8.7% to Rp12.86 trillion
  • Income from operations declined 24.8% to Rp1.34 trillion
  • Income for the period attributable to equity holders of the parent entity declined 11.4% to Rp722.4 billion
  • Earnings per share (“EPS”) was Rp82

Jakarta, 30 April 2013 – PT Indofood Sukses Makmur Tbk (“Indofood” or the “Company”) today announced its financial results for the period ended 31 March 2013. Indofood reported consolidated net sales of Rp12.86 trillion, an increase of 8.7% from Rp11.83 trillion in the same quarter last year. In terms of contribution to Indofood’s consolidated net sales, Consumer Branded Products (“CBP”) Group contributed around 45%, while Bogasari, Agribusiness and Distribution contributed 26%, 21% and 8% respectively. 

Total sales value of CBP Group, which mainly consists of Noodles, Dairy, Snack Foods, Food Seasonings and Nutrition & Special Foods Division grew 10.9%, primarily driven by volume growth in all divisions within the Group. Bogasari Group posted 13.3% increase in total sales value on higher average selling price and volume. Agribusiness Group recorded 3.1% decline in total sales value due to lower average selling prices of palm products and rubber, as well as lower sales of edible oil products, despite higher CPO and sugar sales volume. Distribution Group registered a total sales value growth of 10.4%, primarily due to higher sales of CBP Group.

Gross profit for the period declined 5.1% to Rp3.11 trillion from Rp3.27 trillion in the first quarter last year and gross margin declined to 24.2% from 27.7%, attributable to lower Agribusiness performance. Income from operations declined 24.8% to Rp1.34 trillion from Rp1.78 trillion, while operating margin decreased to 10.4% from 15.0% on lower gross profit and higher operating expenses. Including profit contribution from China Minzhong Food Corporation Limited, Income for the period attributable to equity holders of the parent entity declined 11.4% to Rp722.4 billion from Rp815.0 billion; net margin decreased to 5.6% from 6.9%. Core profit declined 7.6% to Rp744.0 billion from Rp805.6 billion on the same period last year. 

Anthoni Salim, the President Director and Chief Executive Officer of Indofood, said: “Our first quarter performance was greatly affected by weaker performance of our Agribusiness Group mainly due to lower CPO and rubber prices, as well as higher costs. The improvement in CBP and Bogasari Groups’ performance, as well as contribution from our investment in China Minzhong Food Corporation Limited helps mitigate some of the decline in Agribusiness performance. Moving forward, we remain committed and focused on sustaining growth and enhancing the value of the company by dynamically adapting our strategies and capitalizing on the strength of our business model.” 

 

Original source: Indofood CBP