Exchange rate profit boosts up Indofood proceed

photo downloaded from: http://info-karir.com/wp-content/uploads/2009/07/indofood.gif

as published in Bisnis Indonesia daily newspaper

Wednesday, 16/12/2009 00:00 WIB

Exchange rate profit boosts up Indofood proceed

JAKARTA: Net profit of PT Indofood Sukses Makmur Tbk increased 41.38 percent in quarter III/2009 as from last year despite the 5.67 percent net sales.

Finance report per September 2009 shows the net profit rise is due to the profit of exchange rate spread and the plummet of sales cost.

Net profit of instant noodle producer here stands at IDR1.58 trillion mounting from IDR1.11 trillion in quarter III/2008.

Net sales of Salim Group firm here reached IDR28.20 trillion or falling from IDR29.90 trillion in September last year.

However, the lower sales cost September 2009 of IDR20.48 trillion as from IDR22.44 trillion has made significant rise of the corporate gross profit.

"The net sales drop is due particularly to the low CPO price and other commodity price. Almost all business units booked the soaring sales volume," said President Director of Indofood Sukses Anthoni Salim in press release yesterday.

He said the contribution of bogasari Group to the consolidated net sales of Idnofood is 29 percent, but slipping from 31 percent September last year due to the plummet of flour sale price. The contribution of agribusiness division to the sales of Indofood also declined from 27 percent into 19 percent due to the CPO and rubber price drop.

Research head of PT Kim Eng Securites Katarina Setiawan said there were two main points causing the rise of company profits. First, the profit of exchange rate spread stands at IDR601.65 billion from the exchange rate loss position September last year of IDR49.92 billion.

Second, there was soaring gross profit margin of consumer branded product (CBP) due to the falling price of CPO as the raw material.

The growing sales of the division is deemed sharp particularly in relation with the incoming sales calculation from the new subsidiary business, PT Indolakto. Indolakto, as the brand owner of Indomilk and Cap Enaak, was acquired by Indofood worth US$350 million from the Drayton Pte Ltd last year.

"Acquisition of Indolakto helps increase the company net profit. But if Indolakto is not in, the sales still grows 8 percent," she said.

For the corporate obligation balance, Katarina said the debt of balance of Indofood has been growing as from that of last year. But the debt in US dollar denomination declined 36 percent from 46 percent last year.

The stock price was stagnant at IDR3,300 yesterday as from early this week leading to the IDR28.97 trillion market capitalization. (Bisnis/21)