Indofood reports 23% rise in first quarter net sales
Indofood reports 23% rise in first quarter net sales
JAKARTA (JP): Publicly-listed PT Indofood Sukses Makmur
announced that net sales in the first quarter of 2001 increased
by 23 percent to Rp 3.5 trillion (US$318 million) from the same
period last year.
Company president Eva Riyanti Hutapea said in a media
statement issued on Sunday that the instant noodle, cooking oil,
and flour divisions respectively contributed 36 percent, 16
percent, and 28 percent to net sales.
Eva said that the company managed to sell around 2.4 billion
packages of instant noodles in the first quarter, which was a 7
percent increase compared to the same period last year, while
sales value rose by 16 percent to Rp 1.3 trillion.
Indofood is known as the largest instant noodle-maker in the
world.
But Eva said that net profit only increased slightly to Rp
219.4 billion.
She explained that operating profits during the first quarter
declined to Rp 566.33 billion as the company had not adjusted the
selling price of its instant noodle products since the last price
adjustment in February despite the fall in the value of the
rupiah in March that raised production costs.
Eva also said that the gross profit margin and operating
profit margin declined to 27 percent and 16 percent,
respectively.
Elsewhere, Indofood said that its outstanding U.S. dollar
debt, as of the end of March 2001, totaled $444 million.
The company said that it planned to repay around $126 million
of its debts in July this year to lower the debt to around $318
million.
Indofood also said that total assets, as of the end of March
2001, was Rp 13.5 trillion, while its total equity of Rp 3.3
trillion experienced a 25 percent increase from the same period
last year.
Indofood was founded by business tycoon Liem Sio Liong who
also founded the Salim Group conglomerate, which transferred
shares and assets from around 100 Salim companies, including
Indofood in 1999, to the Indonesian Bank Restructuring Agency
(IBRA) in a bid to repay the group's debt to the government.
Shares in Indofood fell by Rp 25 on Friday to close at Rp 775
per share.
Traders said that, in addition to the generally weak market
sentiment due to the weakening rupiah, investors were concerned
about how the company planned to finance a proposed purchase of
more than 30 percent of Singapore's Golden-Agri Resources worth
at least $97.6 million.
Dealers said that the weakening rupiah raises questions over
the company's capacity to borrow more money to finance the
acquisition, as it already has a substantial amount of U.S.
dollar debt. (rei)