Indofood Agri

Indofood Agri: 4Q10 results out this morning, soundly beat expectations. Revenue at Rp 3tr, +31% yoy. Net profit at Rp 0.6tr, double yoy.
For the full year, revenue at Rp 9.5tr +4.9% yoy, net profit at Rp 1.4tr -8% yoy, but would have been higher if not for lower gains from chg in FV of biological assets and FX…

Co benefited from higher sales volumes of edible oil and fat pdts and palm seeds, higher ASP of CPO, palm kernel and rubber, as well as contribution from sugar sales. This helped boost EBITDA margins to 36% in 4Q10, vs 28.7% yoy, and vs 32.1% for the whole of FY10...

Mgt expects palm oil demand to be supported into 2011, with the gradual recovery in global economic climate, demand from the F&B industry and population growth. Notes the expanded capacity from the new CPO refinery in Jakarta completed in Dec ’10 will add much needed capacity to grow the Edible Oils and Fats business. Adds the building of a sugar factory in South Sumatra and new palm oil mills in Kalimantan and S. Sumatra will further strengthen the plantation operations.