Indofood booked US$123m profit in first half of year
JAKARTA (JP): Publicly listed food producer PT Indofood Sukses Makmur announced on Sunday a net profit of Rp 825 billion (US$123 million) for the first half of the year.
"Achievement of this profit was supported by several factors, namely the buoyancy and improvement in general economic conditions in Indonesia, the continued acceptance and demand by our customers for our products, and the strong rally of the Indonesian rupiah, particularly at the end of the first half of 1999," company president and chief executive officer Eva Riyanti Hutapea said in a statement.
Describing the profit as "remarkable growth", Hutapea said the net profit included net foreign exchange gains of Rp 396 billion, which were principally unrealized.
The statement did not provide comparative figures for the first half of last year, but it reported that net profit was Rp 150 billion last year, and Rp 153 billion for the first quarter of the year.
Consolidated sales for the first half of the year reached Rp 5.6 billion, a 40 percent increase over the same period in 1998.
The instant noodle business, with sales of four billion packs, was the main contributor to the net sales, with a 40 percent share, followed by edible oils and fats, 24 percent, and flour milling, also 24 percent, the statement said.
Gross profits for the first six month period rose by 23 percent, and the operating margin increased by 5 percent.
Hutapea said Indofood had been consistent in servicing its debt obligations, with principal and interest payments meeting their respective due dates.
Outstanding foreign debts, which represent about 81 percent of the company's bank borrowing, reached $772 million as of June 30, a 26 percent decrease from outstanding foreign debt on June 30, 1998.
Total assets were Rp 10.6 trillion, with a cash position of Rp 1.9 billion at the end of the first semester.
Hutapea announced that the planned divestment of a major equity stake in the Bogasari flour mill was proceeding as scheduled.(jsk)