Higher finance costs and the impact of foreign exchange weighed on the bottom line of Indonesian agri-food business Indofood in 2015.
Indofood booked income attributable to equity holders of the parent of IDR2.97 for last year, compared to IDR3.94bn in 2014.
The company posted a 9.8% drop in core profit – which reflects underlying profit and excludes the impact of non-recurring items and difference in foreign exchange rate – to IDR3.56trn (US$266.4m).
However, Indofood said income from operations rose to IDR7.36trn in 2015, up from IDR7.32trn a year earlier.
Sales inched up 0.7% to IDR64trn with the firm’s consumer branded products division – which produces branded noodles, snacks and seasonings – and its wheat flour and pasta manufacturing division Bogasari, contributing 49% and 24% to overall sales respectively.
Anthoni Salim, the president director and CEO of Indofood, said: “Entering 2016, we are positive on the improvement in the macroeconomic climate, however we remain cautious of the possibility of the emergence of new challenges. We will continue to pursue sustainable growth, both organically and inorganically, while maintaining a healthy financial position.”