Singapore-based publicly listed company Indofood Agri Resources Ltd (IndoAgri), subsidiary of PT Indofood Sukses Makmur Tbk (INDF), today reports a 40.9% drop in attributable net profit during the first half this year.
In a public statement to Indonesia Stock Exchange (IDX) today, IndoAgro booked Rp545 billion attributable net profit in 1H 2010 from a year earlier of Rp923 billion.
The profit decrease was due to lower foreign exchange gains and biological assets valuation. Excluding both factors, IndoAgri booked a slight decrease by 1.8% from Rp4.28 trillion in the first half of last year to Rp4.21 trillion in 1H 2010.
In return, IndoAgri's gross profit fell 1.6% from Rp1.59 trillion in 1H 2009 to Rp1.56 trillion in 1H 2010. Gross margin remained flat at 37.2% in the first half of this year.
According to Mark Wakeford, CEO and Executive Director of IndoAgri, despite lower revenue in the second quarter, gross profit remained flat on higher profit contributions from rubber and palm seeds.
"The Group delivered a satisfactory performance with stronger rubber and palm kernel average selling prices, palm seed sales, and tight cost control," he said in a press statement today.
Wakeford added the demand outlook for palm oil to remain positive in 2010 with the improving global economic climate, consumption growth from India, China, and other emerging Asia economies, coupled with stronger demand for biodiesel drivedn by government mandates in Europe, Brazil, and Argentina.
Disclosure: No position at the stock mentioned above.
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