Indofood loses Rp 456b from rupiah depreciation

Indofood loses Rp 456b from rupiah depreciation

JAKARTA (JP): Publicly listed PT Indofood Sukses Makmur (ISM),
a unit of the widely-diversified Salim Group, reported yesterday
a net loss of Rp 456 billion (US$126.66 million) in the first
nine months of 1997 caused by foreign exchange losses.

The company said in a statement that it had recognized, as a
one-time charge to its operations, Rp 900 billion in foreign
exchange losses incurred by the rupiah's steep depreciation.

"As of the end of September, Indofood had about Rp 1.1
trillion in cash and deposits as well as Rp 3.6 trillion in long-
term bank loans denominated in U.S. dollars due within five
years," the company said.

Indofood explained that Rp 682 billion of the total losses was
considered an extraordinary charge and consequently it booked a
net loss of Rp 456 billion for the first three quarters.

The statement did not mention the company's operating profit
to explain how the net losses were calculated.

"However, Indofood's fundamentals remain strong and the market
shares of our products have basically remained at the same level
as last year's," Indofood chief executive officer Eva Riyanti
Hutapea said.

The statement said that Indofood recorded an increase of 68
percent in net sales to Rp 3.5 trillion in the year's first nine
months.

It added that its noodle division accounted for 37 percent of
total sales with a 10 percent growth in the sales volume to 6.3
billion packs due to the operations of the Manado and Pontianak
factories beginning in late 1996.

The statement said that its noodle division's net operating
profit increased to 23 percent as a percentage of sales in 1997,
compared with 21 percent in 1996.

The edible oil and plantation operations, which were acquired
in April 1997, contributed around Rp 313 billion in net sales or
accounted for 9 percent of the company's consolidated net sales
in the first nine months. This division produced a 44.5 percent
operating margin and contributed 23 percent of total operating
profits.

The company added that its Bogasari Flour Mills division
accounted for 23 percent of the net sales and contributed 20
percent to the group's operating profits.

"Up to September 30, 1997, the baby foods division achieved an
18 percent net operating profit margin and the snack foods
yielded 11 percent," the statement said.

On the overall condition, Indofood's net operating margin were
maintained at about 18 percent of net sales.

But the company did not disclose its amount of the operating
profit for the Jan-Sept period.

The statement said that the group's total assets increased to
Rp 6.2 trillion in 1997 from Rp 4 trillion in 1996 due to the
acquisition of six sister companies in April this year.

The company acquired PT Salim Invomas Pratama (oilpalm
plantations), PT Intiboga Sejahtera (edible oils), PT Salim Oil
Grains (edible oils trading), PT Bitung Menado Oil Ltd (coconut
oil), PT Argha Giri Perkasa (coconut oil) and PT Indomarco Adi
Pratama (consumer goods) for Rp 1.55 trillion in April. (aly)