Aug 26, 2010

Indofood 1H net profit jumps 76.37%

Indonesia's largest instant noodle maker PT Indofood Sukses Makmur Tbk (INDF) today announces a 76.37% jump in net profit in the first half of this year on the back of lower cost of goods sold.  
Indofood posted Rp1.41 trillion net profit or Rp355 per share in the first half of 2010 from Rp799.74 billion or Rp253 per share a year earlier.
Operating income rose 40.54% from Rp2.22 trillion in the first half of last year to Rp3.12 trillion in the first half of 2010, despite a higher operating expenses of 10.84% from Rp2.49 trillion to Rp2.76 trillion.
Indofood's gross profit increased 24.58% from Rp4.72 trillion to Rp5.88 trillion as a result of lower cost of goods sold by 8.38% from Rp13.36 trillion to Rp12.24 trillion.
The company, controlled by Salim family, booked Rp18.12 trillion revenue, a slight increase of 0.22% from Rp18.08 trillion a year earlier. The biggest contributor for Indofood's revenue was consumer branded product (CBP) segment of 47%, wheat flour business made 26%, agribusiness with 19%, and 8% came from distribution segment.
In a morning notes today, PT Mandiri Sekuritas said Indofood's 1H 2010 net income is above consensus estimates. The net income growth was mainly due to increase in noodle selling price.
Looking at segmental performance, CBP division performed well with 8.3% year on year growth that compensated revenues contraction from wheat flour segment. Agribusiness segment posted flat growth year on year. Indofood is currently trading at PER10-11F consensus of 17.1-14.8x.

Disclosure: No position at the stock mentioned above.

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