PT Indofood posts net profit of Rp 150 billion
PT Indofood posts net profit of Rp 150 billion
JAKARTA (JP): Food products producer PT Indofood Sukses Makmur
recorded a net profit of Rp 150 billion (US$17.5 million) last
year after a Rp 1.2 trillion loss in 1997, the company said on
Tuesday.
Company chief executive officer Eva Riyanti Hutapea said the
sharp increase in sales had helped it reap profits, despite the
prolonged economic crisis.
The company suffered the 1997 massive loss mainly as a result
of foreign exchange losses.
Eva said Indofood sales surged 77 percent to Rp 8.8 trillion
last year despite a "downturn in demand".
She said 88 percent of last year's sales were contributed by
four main operations, including the instant noodle manufacturing
division with a contribution of Rp 2.9 trillion, or 34 percent of
total sales, and the edible oil and fats manufacturing division
with a contribution of Rp 2.1 trillion, or 24 percent of total
sales.
The two other largest contributors were the flour division
which contributed Rp 1.4 trillion, or 16 percent of total sales,
and edible oil and fats trading which contributed Rp 1.2
trillion, or 14 percent of the sales.
The company recorded an operating income of Rp 2.1 trillion
last year, as against Rp 854.9 billion in 1997 with the edible
oils and fats division providing the largest contribution of Rp
910.8 billion, or 44 percent of the group's total operating
income.
She said the company cash flow remained secure, citing cash
and deposits totaling Rp 2.1 trillion by the end of 1998.
On the other hand, bank loans totaled Rp 8.5 trillion, most
of which are in U.S. dollars.
She said Indofood had increased hedging in foreign currency
exposure from 43 percent in December 1997 to more than 80 percent
in 1998.
Eva said Hong Kong-based First Pacific Company and Japan's
Nissan Food Products Company Ltd. had intended to acquire 60
percent of the shares of the Salim Group in Indofood, but the
transaction had been canceled.
"The termination of the transaction will have no adverse
impact on the company's operating performance, as Indofood is
being managed independently and professionally," she said. (jsk)