SINGAPORE (April 28): IndoAgri, the integrated agribusiness group and manufacturer of leading brands of edible oils and fats products in Indonesia, reported 1Q17 earnings rose 79.6% to Rp 171 billion ($18 million) from Rp 95 billion a year ago.
IndoAgri says the strong performance came on the back of higher average selling prices of agriculture crops and a strong recovery in palm production.
The group reported consolidated revenue of Rp 4.4 trillion in 1Q17, increasing 40% from a year ago on higher sales contribution from plantation and Edible Oil & Fats divisions. Plantation division achieved a 54% revenue growth to Rp 2.8 trillion on significantly higher average selling prices and higher sales volume of crude palm oil (CPO) and palm kernel (PK) related products. EOF division also performed well with revenue growing 29% to Rp 2.7 trillion on higher selling prices and sales volume of edible oil products.
In its outlook, IndoAgri says agricultural commodity prices remain unpredictable on expected recovery in palm and soybean production, lower growth in key markets like China and fluctuations of Indonesian Rupiah and US Dollar.
However, its operations in Indonesia continue to be supported by positive economic outlook for Indonesia, the ongoing fiscal reforms in the areas of infrastructure and social security, and healthy domestic consumption.
The group has also been building up organisational and operational capacities in anticipation of the economic recovery, and are well set to capture the growth opportunities.
“We continue to focus on extracting the optimal from our value chain, and proactively improve operations, increase yields, raise productivity and control costs,” says IndoAgri.
Shares of IndoAgri closed at 48 cents on Thursday.
