Google

ASEANAFFAIRS
Sign up | Log in

    ASEAN PROFILES

  ASEAN KEY DESTINATIONS

Home  >>   Daily News  >>   Indonesia News  >>   >> Indofood’s sales up double digits, but profits down in 2013
NEW UPDATES Asean Affairs  24 March 2014  



Indofood’s sales up double digits, but profits down in 2013

Food giant PT Indofood Sukses Makmur (INDF) announced on Friday that its consolidated sales rose by 15 percent in 2013, supported by most of its business divisions.

In a statement, Indofood said that its sales stood at Rp 57.73 trillion (US$5.05 billion) in 2013, up 15 percent from Rp 50.2 trillion a year ago.

The growth rate was even higher than the 10.4 percent it saw in 2012.

Indofood — which is run by the Salim family — said that most of its business divisions contributed positively to the sales figure.

At the moment, the company runs five business divisions consisting of consumer branded products (CBP), flour-maker Bogasari, agribusiness, distribution, cultivation and processed vegetables.

The CBP and Bogasari divisions made up 42 percent and 26 percent of the sales, respectively.

Meanwhile, the rest of the sales came from the agribusiness division with 20 percent, the distribution division with 8 percent and the cultivation and processed vegetables division with 4 percent.

The cultivation and processed vegetables division is Indofood’s newest.

It began to be consolidated in Indofood’s financial performance since September last year after the company acquired a 63.5 percent stake within China Minzhong Food Corporation Limited.

According to Indofood’s statement, the CBP division, which is represented by subsidiary PT Indofood CBP (ICBP), posted a 14 percent surge in its sales to hit Rp 24.25 trillion.

ICBP’s business products include noodles, dairy, snacks, food seasonings, nutritious and special foods and beverages.

Noodles remain its biggest contributor to growth as they made up 68 percent of sales, followed by dairy with 18 percent, snacks with 7 percent, food seasonings with 4 percent, nutrition and special foods with 2 percent and beverages with 1 percent.

In its own statement, ICBP attributed its positive performance to higher sales volumes of all its products and increases in its average selling prices.

ICBP said that higher costs, especially wages, had squeezed its gross profit margin to 25.6 percent in 2013, from 26.7 percent in the previous year.

Its operating income margin declined as well to 11 percent, from 13.1 percent, as the company recorded higher sales expenses.

In the end, ICBP’s net profit rose only by 2.1 percent to Rp 2.23 trillion.

Meanwhile, according to Indofood, its Bogasari division gained a 17.2 percent increase in sales and its distribution division registered a 15.6 percent rise in sales.

Its agribusiness division — represented by subsidiaries PT PP London Sumatra Indonesia (LSIP) and PT Salim Ivomas Pratama (SIMP) — became the only division to report a slump in its business.

“The agribusiness group recorded a 4.1 percent decline in total sales value, mostly attributable to lower edible oil sales,” Indofood said in its statement.

Despite the double-digit growth in sales, Indofood saw its net profits fall 23.2 percent to Rp 2.5 trillion last year because of higher raw
material costs, higher wages, lower average selling price of its agribusiness products and foreign exchange losses.

Following the release of the 2013 financial statements, Indofood’s share rose 1.4 percent to Rp 7,325 apiece on the Indonesia Stock Exchange, while those of ICBP rose by 1.6 percent to Rp 10,975 per share from a day before.



Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates
Contact: marketing@aseanaffairs.com

Comment on this Article. Send them to  your.views@aseanaffairs.com

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
 
or
submit your comment in the box below



 
Today's  Stories                             March 24, 2014 Subsribe Now !
• PDRC anti-government protest leader calls Bangkok mass rally on March 29 Subcribe: Asean Affairs Global Magazine
• Indofood’s sales up double digits, but profits down in 2013
• Garuda may fail to secure enough funds from rights issue
Research Reports
on Thailand 2007-2008

• Textiles and Garments Industry
• Coffee industry
• Leather and footwear industry
• Shrimp industry

• Australian PM sees "increasing hope" of solving MH370 mystery
• EU-VN deal to boost exports to Norway
Asean Analysis                    March 21, 2014
• Asean Analysis March 21, 2014
Aloha ASEAN: Hagel to Host Defense Ministers in Hawaii
Advertise Your Brand

Asean Stock Watch    March 21, 2014
• Asean Stock Watch-March 21 2014
The Biweekly Update
• The Biweekly Update  March 21, 2014

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan

ASEAN  ANALYSIS

This year in Thailand-what next?


AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More

 


Name

Name


Email

Email



1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand
asean@aseanaffairs.com