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Fri, 09 May 2008

JAKCHAT/Food firms may post lower profit due to soaring production costs

From: JakChat

By viperaberushitam
 Originally Posted By: Capt. Mainwaring
 Originally Posted By: Roy's hair
It's called decimal. Base 10 if you will. It's widely taught in schools. 1000 million = 1 billion. The universe is approximately 20 billion light years across and 14.5 billion years old. Divide by the number you first thought of and Bob's your Uncle.


Don't get too bloody smart.

So you reckon they only made 40 grand profit?


They don't know the difference between juta, milyar, million and billion. You know it, you're from Harrow.



Well it does keep the tax payments down, besides have not ever hear of a "misunderstanding" in this country?


Thu, 08 May 2008

JAKCHAT/Food firms may post lower profit due to soaring production costs

From: JakChat

By Capt. Mainwaring
 Originally Posted By: Roy's hair
It's called decimal. Base 10 if you will. It's widely taught in schools. 1000 million = 1 billion. The universe is approximately 20 billion light years across and 14.5 billion years old. Divide by the number you first thought of and Bob's your Uncle.


Don't get too bloody smart.

So you reckon they only made 40 grand profit?


They don't know the difference between juta, milyar, million and billion. You know it, you're from Harrow.


Thu, 08 May 2008

JAKCHAT/Food firms may post lower profit due to soaring production costs

From: JakChat

By Roy's hair
It's called decimal. Base 10 if you will. It's widely taught in schools. 1000 million = 1 billion. The universe is approximately 20 billion light years across and 14.5 billion years old. Divide by the number you first thought of and Bob's your Uncle.


Thu, 08 May 2008

JAKCHAT/Food firms may post lower profit due to soaring production costs

From: JakChat

By Capt. Mainwaring
 Quote:
Food company Siantar Top, which produces snacks, recorded an almost nine-fold drop in net profit during the first quarter of this year to Rp 744 million from Rp 3.02 billion in the same period last year.


I do wish they could standardise a number system.


Thu, 08 May 2008

JP/Food firms may post lower profit due to soaring production costs

Novia D. Rulistia and Rendi Akhmad Witular, The Jakarta Post, Jakarta

While most publicly listed food processing companies have enjoyed hefty first-quarter profits, rising global food crop and energy prices are likely to squeeze earnings in the coming months.

A possible slump in people's purchasing power as a result of plans by the government to raise fuel prices, which will cause a rise in the prices of other products, is likely to exacerbate the situation.

"Profit margins are expected to shrink in the second quarter due to the higher prices of raw materials. The margins may drop by around 20 percent for the full year if fuel prices are raised," Valbury Asia Securities analyst Mastono Ali said.

Mastono says the food processing industry will respond to the higher costs by either jacking up their prices or maintaining prices and lowering profit margins.

Some food producers, he said, had already raised retail food prices by 8 to 10 percent to compensate for the higher prices of raw materials and energy.

"The possibility of food producers raising their prices is still wide open in the coming months," he said.

PT Indofood Sukses Makmur, the world's largest instant noodle producer, in March raised prices of its instant noodles for a fifth time in 10 months in response to soaring production costs.

"It's going to be some tough months ahead. We have raised our noodle prices twice already this year, and we hope there won't be another increase in the near future," Indofood vice president Fransiscus Welirang told The Jakarta Post recently at the Presidential Palace in Jakarta.

Indofood reported a more than double first-quarter net profit this year. Profit rose to Rp 382.9 billion (US$41.6 million) from Rp 177.3 billion in the same period last year.

Sales increased to Rp 8.85 trillion from Rp 5.83 trillion, while sales cost soared to Rp 6.49 trillion from Rp 4.58 trillion.

Fransiscus said the company expected its sales to rise on the back of the country's economic growth.

"Noodle sales will grow in similar percentage with this year's economic growth target. That's about 6 percent from around 13 billion packs (last year)," he said, adding the firm would secure key raw materials to help boost cost efficiency.

Soybeans, corn, wheat, rice and palm oil are among the commodities that have reached record price highs this year, jacking up prices of noodles, breads and pastas worldwide.

Analyst Ari Pitoyo of Bahana Securities said an increase in fuel prices was unlikely to hurt firms engaged in primary foods as much as those dealing with secondary food stuffs, such as snacks.

"For companies producing primary foods, such as noodles, their performance in the upcoming quarters is likely to be better than companies focusing on secondary food stuffs," he said.

Food company Siantar Top, which produces snacks, recorded an almost nine-fold drop in net profit during the first quarter of this year to Rp 744 million from Rp 3.02 billion in the same period last year.

Sales declined to Rp 142 billion from Rp 191.4 billion.

Major snack producers Mayora and Suba Indah have yet to make public their first quarter performances.

Despite a gloomy outlook for secondary food stuff producers, analysts remain upbeat the overall industry still has room to grow, given that Indonesia's population is still dominated by young people.

Hence, trends in snacking are expected to keep demand up in the market, not only for manufacturers, but also for importers, suppliers and distributors of the products.

According to Ari, the companies that will perform badly in the coming months are those that will be most affected by the increase in fuel prices and higher interest rates, including the food sector.

"The consumer-based sector has just recovered from the impact of fuel price increases in 2005. Since last year until the first quarter of this year it has seen a better performance.

"But for the rest of this year, players in the sector should be on full alert for any adverse external impacts," said Ari.

Chairman of the Indonesian Association of Food and Beverages (GAPMI), Thomas Dharmawan, said the food and beverage industry would still grow in value, but not in sales volume.

He believes many producers are likely to raise the prices of their products despite a possible decline in people's purchasing power.

"I think the impact of raising prices will be limited. Low purchasing power is likely to be centered in Java, while those outside the island will be in better condition as they are enjoying strong commodity prices," he said.

Most of the country's main commodities, including palm oil, soybean, corn and wheat, are planted in Sumatra, Kalimantan and Sulawesi because of limited land in Java, which is home to about 65 percent of the country's 225 million people.

Like other economic giants, Indonesia, Southeast Asia's largest economy, has fallen victim to skyrocketing global commodity prices, which has caused inflation to accelerate at its fastest pace in 18 months.

The high inflation environment has deterred the central bank from further cutting its benchmark interest rate, which is needed for local companies to expand or for investors to start up new companies at low borrowing costs from banks.

Indonesia Stock Exchange Food and Beverages Indicators 2006
Ranking by total assets (million Rp)
No. Company 2006 2005 Change
1 Indofood Sukses Makmur 16,112,493 14,786,084 9.0%
2 SMART 5,311,931 4,597,227 15.5%
3 Davomas Abadi 2,707,801 1,746,892 55%
4 Tunas Baru Lampung 2,049,163 1,451,439 41.4%
5 Mayora Indah 1,553,377 1,459,969 6.4%
6 Ultra Jaya Milk 1,249,080 1,254,444 -0.4%
7 Sierad Produce 1,113,796 1,157,773 13.8%
8 Aqua Golden Mississipi 795,244 732,354 8.6%
9 Suba Indah 793,953 838,121 -5.3%
10 Multi Bintang Indonesia 610,437 575,385 6.1%
11 Delta Djakarta 577,411 537,785 7.4%
12 Fast Food Indonesia 483,575 377,905 28.0%
13 Siantar TOP 467,491 477,443 -2.1%
14 Tiga Pilar Sejahtera Food 363,933 357,786 1.7%
15 Prasidha Aneka Niaga 288,053 284,336 1.3%
16 Cahaya Kalbar 280,807 328,249 -14.5%
17 Ades Waters Indonesia 233,253 210,052 11.0%
18 Sekar Laut 94,770 94,436 0.4%
19 Pionnerindo Gourmet Int'l 75,759 76,412 -0.9%

Ranking by net profit/loss

No. Company 2006 2005 Change
1 Indofood Sukses Makmur 661,210 124,018 433.2%
2 SMART 628,005 304,203 106.4%
3 Davomas Abadi 196,277 90,069 117.9%
4 Mayora Indah 93,576 45,730 104.6%
5 Multi Bintang Indonesia 73,581 87,014 -15.4%
6 Fast Food Indonesia 68,926 41,291 66.9%
7 Tunas Baru Lampung 52,884 6,219 750.4%
8 Aqua Golden Mississipi 48,854 64,350 -24.1%
9 Delta Jakarta 43,284 56,405 -23.3%
10 Sierrad Produce 40,954 (122,480) 133.4%
11 Cahaya Kalbar 15,291 (21,594) 170.8%
12 Ultra Jaya Milk 14,732 4,528 225.4%
13 Siantar TOP 14,426 10,637 35.6%
14 Prasidha Aneka Niaga 11,847 118,433 -90%
15 Sekar Laut 4,637 91,602 -94.9%
16 Tiga Pilar Sejahtera Food 130 35 271.4%
17 Pionnerindo Gourmet Intl (1,851) 4,658 -139.7%
18 Suba Indah (51,925) (328,969) 84.2%
19 Ades Waters Indonesia (128,794) (119,257) -8.0%