Indofood reports profit increase in first quarter

by World Grain Staff
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JAKARTA, INDONESIA — PT Indofood Sukses Makmur Tbk announced on April 29 a gross profit increase of 18.9% for the first quarter to Rp3.32 trillion from Rp2.80 trillion. Operating profit grew 32% to Rp1.77 trillion from Rp1.34 trillion.

The company reported consolidated first quarter net sales of Rp10.76 trillion, an increase of 15.6%, from Rp9.31 trillion reported in the same quarter last year. Gross margin and operating margin improved to 30.9% and 16.5%, respectively. Net income attributable to the equity holders of the parent company rose 16.4% to Rp735.6 billion from Rp631.9 billion. Core profit increased to Rp726.4 billion from Rp581.4 billion in the same quarter last year.

All business groups, namely Consumer Branded Products (CBP), Bogasari, Agribusiness and Distribution registered healthy sales growth, according to the company.

The CBP Group, which consists of noodles, dairy, food seasonings, snack foods, nutrition & special foods divisions, recorded 8.3% total sales value growth, driven by the increase in sales volume and average selling price. The CBP Group continued to be the highest contributor to consolidated net sales, contributing 43%.

Total sales value of Bogasari Group increased 15.9% on the back of stronger volume and higher flour price in conjunction with higher global wheat prices. Bogasari Group contributed 26% to consolidated net sales.

The Agribusiness Group continued to benefit from higher Crude Palm Oil and rubber prices. The higher prices combined with increased production, as well as stronger edible oils and fats sales has resulted in a significant increase of 37.5% in the Group’s total sales value. Contribution of Agribusiness Group to consolidated net sales was 23%.

Distribution Group also recorded total sales value growth of 4.2%, partly due to higher sales of CBP Group. Distribution Group contribution to consolidated net sales was 8%.

Anthoni Salim, the president director and chief executive officer of Indofood, said: “We are very pleased that we started the year with solid performance. We will continue to capitalize on strength of our business model to sustain our performance.”
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