JAKARTA - Consumer company owned by conglomerate Anthony Salim, PT Indofood Sukses Makmur Tbk (INDF) reported a 17.00 percent decrease in net profit on an annual basis in 2022.
Profit for the year attributable to owners of the parent entity in 2022 is IDR 6.35 trillion, lower than the 2021 achievement of IDR 7.66 trillion. The net profit correction was experienced by the parent Indofood even though net sales grew 11.56 percent year on year (YoY).
Throughout 2022, INDF pocketed net sales of IDR 110.83 trillion, higher than IDR 99.34 trillion in the previous year. The increase in sales was seen in the branded consumer product segment which grew 14.56 percent YoY to Ro65.25 trillion, from IDR 56.96 trillion in 2021.
Bogasari's business also grew 23.16 percent YoY to Ro31.87 trillion in 2022 compared to Rp25.88 trillion in 2021. Meanwhile, sales in the agribusiness segment fell 9.75 percent on an annual basis to Rp17.77 trillion from Rp19.69 trillion.
The drop in INDF's net profit could not be separated from the swelling of a number of expense items. The highest increase was seen in the financial burden that shot up 177.27 percent on an annual basis, from Rp2.88 trillion in 2021 to Rp7.99 trillion throughout 2022.
INDF management in its financial statements stated that there was an increase in net losses over the difference in foreign currency exchange rates from funding activities that contributed to the increase in financial expenses. This net loss from the difference in exchange rates swelled by 11.341 percent from only IDR 41.88 billion in 2021 to IDR 4.79 trillion throughout 2022.
Indofood President Director and CEO Anthoni Salim said 2022 was a year full of challenges due to increasing geopolitical tensions. Indofood must also face high inflation rates and rising commodity prices that trigger uncertainty in the market.
"However, Indofood can end 2022 with positive achievements supported by the resilience of our business model. In the future, our growth strategy is to continue to maintain a balance between market share and profitability and maintain a healthy balance sheet," said Anthony Salim in his statement, quoted Tuesday, March 28.
Despite the decline in net profit, Indofood reported a 16 percent growth in operating profit to IDR 19.69 trillion from IDR 16.91 trillion in 2021. This was followed by an increase in operating profit margin to 17.8 percent in 2022 from 17.0 percent in 2022.
Meanwhile, core profit reflecting operational performance increased 12 percent to Rp9.06 trillion from the previous Rp8.07 trillion.
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