The world's largest instant noodle maker, PT Indofood Sukses Makmur, plans to boost its capacity to 14.5 billion packs per year from 13.5 billion to meet growing demand, a senior executive said on Tuesday (3/4/07).
The company would spend Rp1.6 trillion ($175.4 million) this year, 80% of which would be for expansion, director Thomas Tjhie said, according to Reuters. "Sales volume increased sharply to 11.3 billion packs last year, or up by 20%, resulting in Rp7.3 trillion in sales."
The per capita instant noodle consumption among Indonesia’s 220 million people is about 57 packs a year, lower than top instant noodle consumer Korea's 70 packs.
Indofood posted a more than five-fold rise in net profit last year on firmer sales and after earnings rebounded following hefty one-off charges in 2005.
In 2005, the company suffered heavy foreign exchange losses on its dollar-denominated debt, while it also had one-off charges from a currency swap contract and a premium paid on the redemption of its dollar-denominated bonds.