Indofood projects 45% increase in net profit

Indofood projects 45% increase in net profit

JAKARTA (JP): Publicly listed PT Indofood Sukses Makmur
projected yesterday its net profit would grow 45 percent to Rp
508 billion (US$205 million) this year.

Company chief executive officer Eva Riyanti Hutapea said the
company had reviewed its initial 15 percent profit growth target
because it had better earnings prospects since the recent
purchase of its six sister companies.

"Indofood has also reviewed its sales target for this year
from Rp 4.2 trillion to above Rp 5 trillion," Hutapea said after
the company's general and extraordinary shareholders meetings.

At the meetings were its president commissioner Sudono Salim,
commissioner Anthony Salim, commissioner Putra Sampurna and
president director Sudwikatmono.

Indofood bought PT Salim Ivomas Pratama, PT Intiboga
Sejahtera, PT Salim Oil Grains, PT Bitung Manado Oil Ltd, PT
Argha Giri Perkasa and PT Indomarco Adi Pratama in April.

Salim Ivomas manages about 50,000 hectares of oil palm
plantations and makes crude palm oil. Bitung Manado makes and
exports refined and crude coconut oil. Salim Oil Grains trades
internationally in edible oil products. Indomarco Adi distributes
consumer goods. Intiboga Sejahtera makes edible oils from palm
oil and Argha Giri makes coconut oil.

Indofood bought 80 percent of the shares in each of the six
companies for Rp 1.5 trillion (US$651.26 million)

Hutapea said Indofood last week signed an agreement with 36
foreign banks to borrow $250 million in syndicated loans to
finance the acquisition of the six companies.

The loan was arranged by Credit Suisse, First Boston, Chase
Manhattan Bank, Commerce Bank, Fuji Bank, Bank of America and
Credit Lyonnais.

The company will also issue 305.20 million rights shares at Rp
3,300 each in a five-for-one ratio to raise Rp 1.007 trillion to
finance the acquisition.

Hutapea said Indofood increased its net profit 15 percent to
Rp 351 billion in 1996 and its net sales by 35 percent to Rp 2.83
trillion.

She said the company increased its profit margin from 17.87
percent to 18.49 percent last year with increased efficiency.

The sale of processed food (noodles, biscuits, spices, etc)
earned Rp 1.78 trillion or 63 percent of the company's total
sales income last year, while wheatflour brought in Rp 1.05
trillion or 37 percent of the total.

It sold 7.3 billion packs of noodles valued at Rp 1.5 trillion
and 2.6 million tons of flour worth Rp 1.05 trillion.

Hutapea said Indofood controlled 90 percent of the domestic
noodle market, 70 percent of the snack market and 60 percent of
the children's food market in 1996.

The meetings agreed to distribute Rp 71.7 billion of its net
profit, or Rp 47 a share, as dividends.

The meetings also agreed to increase the company's paid up
capital from Rp 1 trillion to Rp 3 trillion. (jsk)