IndoFood Agri: lackluster results. Revenue -8% yoy to Rp2.1trn, due to lower sales of cooking oil & fats, lower CPO sales to external parties, and lower avg CPO selling prices and yields. This was despite the 16% yoy increase in mature planted oil palm area to 151k ha. Net profit -68% yoy to Rp318bn, mainly due to lack of FX gains and gains arising from changes in FV of biological assets...
Nevertheless, mgt expects 2H10 to better 1H10 resutls, driven by increased production of CPO and salesof cooking oil and margarine, in line with the seasonal peak production period for oil palm, and festival demand. Indofood will continue to focus on expanding size of palm and sugar plantations, increase sugar and palm refining, and margarine production capacity. Similar to Golden Agri, mgt also positive on longer term outlook, to be underpinned by consumption in India, China, and biodiesel demand.
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