Indofood will pay dividends on 30% of profit

Indofood will pay dividends on 30% of profit

The Jakarta Post, Jakarta

The world's largest instant noodle maker PT Indofood Sukses
Makmur plans to pay out 30 percent of its 2003 net profit in
dividends next year, which is the same ratio as last year, a
senior official said.

"We have planned to allocate 30 percent of our profit for
dividend payouts, but it should be first approved by our
shareholders," said Indofood chief executive officer Eva Riyanti
Hutapea.

Eva disclosed the plan after signing a cooperation agreement
with Bank Mandiri to establish a refinancing scheme for small-
and medium-sized enterprises.

In the first nine months of this year, Indofood has recorded a
profit of Rp 453 billion (US$53.2 million), 30 percent lower than
Rp 651 billion it earned in the same period last year because of
higher operational costs. However, sales rose by 10 percent to Rp
13 trillion from Rp 11.8 trillion.

Analysts have predicted that for the full year, Indofood is
estimated to book Rp 613 billion in profit and Rp 17.6 trillion
in sales. Last year, the company's sales increased by 12 percent
to Rp 16.5 trillion, with net profit rising 8 percent to Rp 802
billion.

The lower profit estimate is linked to higher marketing
expenses, stiffer competition and weaker consumer purchasing
power.

For next year, Indofood expects sales to grow by 10 percent.

The publicly listed company is 52 percent owned by Hong Kong-
based First Pacific Co. Ltd., while the remaining shares are held
by individual shareholders.

Instant noodles are the main pillar of Indofood's business,
with a 55 percent contribution to net profits, followed by flour
(22 percent), edible oil and fats (19 percent) and miscellaneous
items, such as snacks and baby food (6 percent).