Indofood, the Indonesian agri-food group, has reported a fall in nine-month profits, pointing to challenging economic conditions in the country, pressure on crude palm oil prices and the weakness of the local currency.
The group booked net income of IDR1.68trn for the period to the end of September, down 45.2% on a year earlier.
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Indofood said its "core profit", which excludes one-off items and the impact of foreign exchange, was down 11.8% to IDR2.71trn.
"Macroeconomic conditions continue to be challenging in recent months. The soft CPO price and weakness of rupiah undermine our net income, despite our core profit, which only weakened by 11.8%," Anthoni Salim, Indofood's president director and CEO said.
Income from operations increased 1% to INR5.42trn, while operating margin "slightly declined" to 11.4%, Indofood said.
Consolidated net sales grew 1.5% to IDR47.56trn. Consumer brands account for half of Indofood's sales.
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