IndoAgri's Q3 net profit up 1.6%

INDOAGRI, a maker of leading brands of edible oils and fats products, reported on Thursday that its net profit attributable to shareholders for the third quarter ended Sept 30, 2014 rose 1.6 per cent from a year ago to Rp124.8 billion, despite a recent decline in commodity prices.

Revenue was at Rp3,602 billion (S$385 million), up 17 per cent from a year ago on recovery in average selling prices and higher external sales from its edible oils and fats (EOF) division.

On year-to-date basis, net profit came in at Rp533 billion, up 80.4 per cent from a year ago.

The company said: "The improved results are principally attributable to strong profit contribution from the plantation division on higher sales volume and commodity prices for palm products, that is, crude palm oil (CPO) and palm kernel (PK)."

Its plantation division reported higher total revenue, reflecting principally higher sales volume and average selling prices of palm products. Higher internal CPO sales to its refineries at market prices resulted in inter-segment sales growth too.

The company expects the domestic demand for palm oil in Indonesia will remain strong, given its vast and growing population base of more than 240 million people.

As of the end of September, it had 58,406 ha of immature oil palm planted, ensuring continued volume growth in the future, said Mark Wakeford, the company's CEO and executive director.