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INDOFOOD Agri Resources posted a net profit of 297.9 billion rupiah (S$24.5 million) for the first half ended Jun 30, up 236 per cent from the 88.6 billion rupiah posted in the year-ago period.
The improved profitability came mainly from higher gross profit from the plantation division, higher gains on biological assets, foreign-exchange gains and lower financial expenses, the agribusiness group said on Wednesday (Jul 31).
The company said: “After the extreme volatilities experienced in 2022, the prices of vegetable oils, including palm oil, showed signs of stabilisation, with fluctuations moving within a much narrower range in 2023.”
The group added: “In line with the higher commodity prices, the group delivered an improved set of results in H1.”
Revenue fell 7.3 per cent to 7.1 trillion rupiah from 7.6 trillion rupiah the year before.
The decline in revenue was attributed mainly to lower sales volumes of crude palm oil and palm kernel related products, and the lower selling prices of edible oils and fats products.
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Indofood Agri Resources said: “Commodity prices are expected to remain highly volatile amid uncertainties from weather conditions and geopolitical conflicts. The global outlook and demand growth are likely to remain subdued due to weaker economic growth and challenging macroeconomic factors.”
Earnings per share stood at 213 million rupiah, up from 64 million rupiah in the preceding year.
The group’s plantation division will continue to focus on crop management to raise the yields from fresh fruit bunches; it will also strive to improve cost control and raise plantation productivity.
Its refinery operations will continue to focus on the growth and recovery of the sales volumes of edible oils and fats through competitive pricing, and through Indonesia’s growing population and rise in per capita income, the group said.
No dividend was declared for H1, unchanged from the year before.
Shares of Indofood Agri Resources closed flat at S$0.295 before the announcement.
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