Mar 15, 2011

Salim Ivomas FY10 earning falls 3.7%

As a company eyeing an initial public offering (IPO) in June this year, PT Salim Ivomas Pratama (SIMP), palm-oil based liquid cooking oil manufacturer, not to come with a glossy financial performance last year. 
With a slight increase in net sales and slight decline in earning, SIMP performance was so so. Nothing special!
SIMP today reported a slight decrease in net income last year as other charges ballooned 174.32%.
Salim Ivomas, a 90%-owned subsidiary of Singapore-listed Indofood Agri Resources Ltd (IndoAgro) and also eyeing an initial public offering in June at Indonesia Stock Exchange (IDX), posted Rp970.98 billion net income or Rp383.69 per share last year from Rp1.01 trillion or Rp398.58 per share in the previous year. 
The company booked Rp525.11 billion other charges from Rp191.42 billion. Operating profit increased 19.25% to Rp2.54 trillion from Rp2.13 trillion, enabling SIMP to augment its operating margin to 26.79% from 23.56%.
In line with operating profit, gross profit rose 16.01% to Rp3.55 trillion from Rp3.06 trillion, while COGS was flat to Rp5.94 trillion from Rp5.98 trillion. Net sales slightly increased 4.86% to Rp9.48 trillion from Rp9.04 trillion.
Kim Eng Securities, Mandiri Sekuritas, and Deutsche Securities may help and arrange the IPO with a target size of US$240 million-US$280 million.
PT Indofood Sukses Makmur Tbk (INDF) is a controlling shareholder in IndoAgri with 68.95% shareholding interest. INDF has also a 8.38% direct shareholding in Salim Ivomas Pratama. In turn, IndoAgri controls 90% shareholding in Salim Ivomas Pratama.
SIMP is group manufacturer owned by IndoAgri. The group is consisting of three categories of palm oil-based liquid cooking oil dubbed branded consumer pack, branded semi-consumer pack, and unbranded industrial type.
Branded consumer pack cooking oil is targeted at consumers in retail outlets and are sold in packages of up to five litres. Branded semi-consumer pack cooking oil is sold in containers of 15 kilograms to 18 kilograms and is generally targeted at merchants which resell the cooking oil to end-users.
Unbranded type cooking oil is sold mainly to PT ISM Group and other industrial users for their manufacturing purposes. With the exception of industrial cooking oil, all products are sold under brand names.
The group’s consumer brands for cooking oil include Bimoli, Bimoli Spesial, Delima, Happy Salad Oil, and Mahakam.
Approximately 95% of the group’s domestic cooking oil sales value of consumer and semi-consumer packs for FY2008 was under the Bimoli and Bimoli Spesial brand names.

Disclosure: No position at the stock mentioned above.  

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