Indofood projects 45% increase in net profit<\/p>\n
JAKARTA (JP): Publicly listed PT Indofood Sukses Makmur
\nprojected yesterday its net profit would grow 45 percent to Rp
\n508 billion (US$205 million) this year.<\/p>\n
Company chief executive officer Eva Riyanti Hutapea said the
\ncompany had reviewed its initial 15 percent profit growth target
\nbecause it had better earnings prospects since the recent
\npurchase of its six sister companies.<\/p>\n
\"Indofood has also reviewed its sales target for this year
\nfrom Rp 4.2 trillion to above Rp 5 trillion,\" Hutapea said after
\nthe company's general and extraordinary shareholders meetings.<\/p>\n
At the meetings were its president commissioner Sudono Salim,
\ncommissioner Anthony Salim, commissioner Putra Sampurna and
\npresident director Sudwikatmono.<\/p>\n
Indofood bought PT Salim Ivomas Pratama, PT Intiboga
\nSejahtera, PT Salim Oil Grains, PT Bitung Manado Oil Ltd, PT
\nArgha Giri Perkasa and PT Indomarco Adi Pratama in April.<\/p>\n
Salim Ivomas manages about 50,000 hectares of oil palm
\nplantations and makes crude palm oil. Bitung Manado makes and
\nexports refined and crude coconut oil. Salim Oil Grains trades
\ninternationally in edible oil products. Indomarco Adi distributes
\nconsumer goods. Intiboga Sejahtera makes edible oils from palm
\noil and Argha Giri makes coconut oil.<\/p>\n
Indofood bought 80 percent of the shares in each of the six
\ncompanies for Rp 1.5 trillion (US$651.26 million)<\/p>\n
Hutapea said Indofood last week signed an agreement with 36
\nforeign banks to borrow $250 million in syndicated loans to
\nfinance the acquisition of the six companies.<\/p>\n
The loan was arranged by Credit Suisse, First Boston, Chase
\nManhattan Bank, Commerce Bank, Fuji Bank, Bank of America and
\nCredit Lyonnais.<\/p>\n
The company will also issue 305.20 million rights shares at Rp
\n3,300 each in a five-for-one ratio to raise Rp 1.007 trillion to
\nfinance the acquisition.<\/p>\n
Hutapea said Indofood increased its net profit 15 percent to
\nRp 351 billion in 1996 and its net sales by 35 percent to Rp 2.83
\ntrillion.<\/p>\n
She said the company increased its profit margin from 17.87
\npercent to 18.49 percent last year with increased efficiency.<\/p>\n
The sale of processed food (noodles, biscuits, spices, etc)
\nearned Rp 1.78 trillion or 63 percent of the company's total
\nsales income last year, while wheatflour brought in Rp 1.05
\ntrillion or 37 percent of the total.<\/p>\n
It sold 7.3 billion packs of noodles valued at Rp 1.5 trillion
\nand 2.6 million tons of flour worth Rp 1.05 trillion.<\/p>\n
Hutapea said Indofood controlled 90 percent of the domestic
\nnoodle market, 70 percent of the snack market and 60 percent of
\nthe children's food market in 1996.<\/p>\n
The meetings agreed to distribute Rp 71.7 billion of its net
\nprofit, or Rp 47 a share, as dividends.<\/p>\n
The meetings also agreed to increase the company's paid up
\ncapital from Rp 1 trillion to Rp 3 trillion. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/indofood-projects-45-increase-in-net-profit-1447893297",
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