Indofood says Q1 net profit soars 102%

Indofood says Q1 net profit soars 102%

Reuters, Jakarta

The world's largest instant noodle maker PT Indofood Sukses Makmur said on Sunday its net income soared by 102 percent in the first quarter of 2002 to Rp308.6 billion (US$33.99 million) from an adjusted figure of Rp152.5 billion booked in 2001.

The company said the net income figure in its unaudited results for first quarter 2001 was adjusted for new accounting principles related to derivative instruments and hedging activities.

In unaudited results for first quarter 2001 as reported last May, the net income figure was given as 219.4 billion.

"With the adoption....of the new accounting principles, the increase in net income for the first quarter ended March 31, 2002, over the same quarter of 2001 significantly changed to 102 percent," the company said in a statement.

Indonesia-based Indofood said its net sales grew 14 percent to Rp3.945 trillion in the first quarter this year from Rp3.471 trillion in the same period of 2001.

In comments attributed to president director and chief executive officer Eva Riyanti Hutapea, the company -- 48 percent owned by Hong Kong conglomerate First Pacific Co. Ltd. -- said noodles, flour and edible oils and fats contributed 84 percent of total sales.

Besides the impact of the new accounting standard, the sharp jump in net income during the first quarter of 2002 was also due to the strengthening rupiah, Hutapea said in her comments.

The rupiah's appreciation from around Rp 10,400 against the dollar by the end of March 2001 to around Rp 9,655 by the end of March 2002 resulted in a net foreign exchange gain of Rp 72 billion, compared to losses of Rp149.8 billion incurred in the first quarter of 2001, the statement said.

The firm also reported progress on its share buyback program, approved last year for the period of June 1, 2001 until Nov. 30, 2002.

"Up to May 15, 2002, Indofood has bought back 310.8 million shares which represents 3.4 percent of the issued and paid-up capital," the comments from Hutapea said.

Last year the shareholders approved a buyback of up to 10 percent of Indofood shares from the public and the issue of options for employees.

Indofood also said its outstanding loans in dollars amounted to $342 million as of the end of March, compared to $346 million as of the end of 2001.

It made a loan repayment of approximately $200 million last year which helped lower its debt to equity ratio to 1.5 times from 1.6 times by the end of December 2001.

The noodle giant posted sales revenue of Rp 14.6 trillion in 2001, and said in March it expected sales revenue to jump more than 10 percent this year, driven by the domestic market.

Indofood shares closed up Rp 25 at Rp 975 on Friday.