Indofood Agri Resources’ H1 net profit up 13.4% at 337.8 billion rupiah amid higher commodity prices
[SINGAPORE] Indofood Agri Resources on Thursday (Aug 1) posted a 13.4 per cent rise in net profit to 337.8 billion rupiah (S$26.6 million) for its first half ended June, as compared to 297.9 billion rupiah in the year-ago period.
In tandem with bottom line growth, earnings per share climbed 13.4 per cent to 242 rupiah, from 213 rupiah previously.
The improvements came amid higher domestic crude palm oil prices, supported by Indonesia’s biodiesel mandate, the agribusiness group said.
Its revenue stood at 9.4 trillion rupiah, up 33.2 per cent from 7.1 trillion rupiah previously. This came on the back of higher revenue contributions from its plantation and edible oil and fats segments.
The plantation segment’s revenue climbed 32 per cent for the half year amid higher selling prices and sales volume of palm products, resulting in a 39 per cent increase in operating profit from H1 2024.
Meanwhile, the edible oil and fats segment clocked 19 per cent revenue growth driven by higher sales selling prices, although its operating profit fell 10 per cent due to higher purchase costs of crude pail oil.
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No dividend was recommended for the six-month period, unchanged from the previous year.
Subdued demand expected, facility expansion to boost crude palm oil refining capacity
With commodity prices set to stay volatile due to uncertainties surrounding weather conditions and geopolitical conflicts, the group expects global demand growth to remain subdued.
Its plantation segment will continue to focus on improving operational results, strengthening cost controls, driving innovations that boost plantation productivity and prioritising capital investments in critical areas.
The expansion for its Tanjong Priok refinery, set to complete in the second half of 2025, will increase the annual capacity of its total crude palm oil refining from 1.7 million tonnes to 2.2 million tonnes per year.
The group added that its edible food and fats segment will focus on expanding sales volumes through competitive pricing strategies and enhanced distribution.
The counter finished Thursday 2.9 per cent or S$0.01 lower at S$0.34, before the news.
