Davomas reports 99% profit increase

Davomas reports 99% profit increase

JAKARTA (JP): Cocoa butter and powder producer PT Davomas
Abadi yesterday announced it had almost doubled its net profit
for this year's first nine months.

The company said it increased its net profit 99 percent to Rp
29.9 billion (US$12.7 million) over the same period last year.

Company president Hendrawan Setiadi said the profit jump was
attributable to an 88 percent increase in net sales revenue from
Rp 85.2 billion to Rp 160.4 billion.

"In volume, the sales of our cocoa butter increased by 75
percent to 16,340 tons in the first nine months of this year over
the same period of last year, while the sales of cocoa powder
rose by 73 percent to 15,605 tons due to strong demand in the
international market," Hendrawan added.

Cocoa butter is widely used in the production of chocolate
products, while cocoa powder is used to give non-chocolate
products a chocolate flavor..

Hendrawan said Davomas started operating its new production
line in August increasing annual production capacity by 20,160
tons to 60,480 tons.

"We intend to modify our production lines to raise the annual
capacity by another 20,160 tons next year and another 40,320 tons
in 1998," he said.

He added that in 1999, Davomas will operate one new production
line with an annual capacity of 40,320 tons.

"Therefore, by the year 2000, we will have a production
capacity of approximately 160 million tons per annum. This will
also increase our market share from only 2 percent to 5 percent
of the world cocoa market," he said.

Hendrawan also disclosed that Davomas had signed a 10-year
contract with one of its main buyers to distribute 40,000 tons of
cocoa butter and powder annually.

He denied to name the buyer but he said the contract would
start in January 1998 and the international market would
determine the price.

Davomas Group also owns newly-listed iodized salt producer, PT
Firskar Agung. (alo)