JAKARTA, INDONESIA — PT Indofood Sukses Makmur Tbk announced on Oct. 31 that gross profit for the period ended Sept. 30 grew 35.8% to Rp 13.62 trillion ($1.12 million) from Rp 10.03 trillion. The gross profit margin increased from 24.3% to 27%, the company said.
The company attributed the increase to growth by most of its strategic business groups as well as sales from its Cultivation & Processed Vegetables group.
The Consumer Branded Products (CBP) group, consisting of Noodles, Dairy, Snack Foods, Food Seasonings, Nutrition & Special Foods, and Beverages posted a 21.2% increase in total sales value. Bogasari, Agribusiness and Distribution groups recorded growth in total sales value of 7.5%, 10.6% and 9.5%, respectively. The Cultivation & Processed Vegetables group delivered Rp3.52 trillion of total sales value in the nine-month period of 2014.
The CBP group remains the largest contributor to consolidated net sales, contributing around 44%, followed by Bogasari, Agribusiness, Distribution and Cultivation & Processed Vegetables Group contributing around 24%, 18%, 7% and 7%, respectively.
Despite higher operating expenses, income from operations increased 27.1% to Rp 6.05 trillion from Rp 4.77 trillion, while operating margin expanded to 12% from 11.5%. Income for the period attributable to equity holders of the parent entity increased 57.6% to Rp 3.03 trillion from Rp 1.92 trillion on lower foreign exchange loss. Net profit margin increased to 6% from 4.7%. Without taking into account non-recurring items and difference in foreign exchange rate, core profit grew 18.1% to Rp 3.03 trillion from Rp 2.57 trillion.
Anthoni Salim, the president, director and chief executive officer of Indofood, said: “We are pleased with our achievement in the nine-month period of 2014. Despite the challenging conditions in domestic macro economy and industries in which we operate, we continue to deliver growth in top and bottom line. We will continue to capitalize on the strength of our business model to position our Company for long term growth opportunities.”