JAKARTA, INDONESIA — PT Indofood Sukses Makmur Tbk announced on March 21 a 5.4% increase in gross profit for 2014 to Rp14.33 trillion ($1.26 billion) from Rp13.59 trillion ($1.2 billion) in the previous year.
Gross margin declined to 24.8% from 27.1%, on lower gross profit achieved by most business groups due to higher raw material cost, salary, wages and employee benefits and utilities, as well as lower average selling price for the agribusiness group.
Income from operations declined 2.3% to Rp6.72 trillion from Rp6.88 trillion, while operating margin decreased to 11.6% from 13.7% on higher operating expenses, mainly higher salary, wages & employee benefits, freight and handling expenses, as well as A&P.
Income for the year attributable to equity holders of the parent entity declined 23.2% to Rp2.50 trillion from Rp3.27 trillion mainly due to foreign exchange loss; net margin decreased to 4.3% from 6.5%. Excluding non-recurring items and difference in foreign exchange, core profit increased 3% to Rp3.37 trillion from Rp3.27 trillion last year
Indofood recorded consolidated net sales of Rp57.73 trillion, an increase of 15% from Rp50.20 trillion last year.
The Agribusiness Group recorded 4.1% decline in total sales value mostly attributable to lower edible oil sales.
“We are pleased that our underlying performance, as reflected in our core profit continue to show growth, despite various challenges,” said Anthoni Salim, president, director and chief executive officer of Indofood. We will exercise caution and continue to be prudent in managing company, while pursuing growth and sustaining our performance.”
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