Indonesian food group PT Indofood Sukses Makmur posted an 18.8% rise in net sales for the first quarter, with gains driven by a strong performance in the noodle category.
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Net sales in the quarter ended 31 March increased to IDR5.38trn (US$593,885,356), up from IDR4.91trn for the comparable period of last year. The company said sales growth was boosted by its Consumer Branded Products Strategic Business Group (SBG) unit, which produces noodles, food seasonings, snack foods and nutrition & special food. SBG posted total sales growth of 13%, primarily due to double digit growth in noodles sales volume.
However, Indofood said that increased costs during the quarter had put pressure on margins, which it successfully offset through various cost cutting programmes.
“The rise in the price of wheat and other raw materials has put pressure on our gross margin, although the increase in CPO price has improved the performance of our Plantations division. The ongoing implementation of cost efficiency programs has continued to curb the effects on costs”, said Anthoni Salim, president, director and chief executive officer.
Gross profit increased 16.4% to IDR1.25trn, while the gross margin slightly declined to 21.4%. Operating profit increased 10.5% to IDR474.11bn, but operating margins declined to 8.1%. Net profit rose to IDR177.31bn, while core profit increased to IDR150.58bn, the company revealed.
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