IndoAgri sinks into the red with 125.68b rupiah loss for Q3

Singapore

INDOFOOD Agri Resources (IndoAgri) has sunk into the red with a net loss of 125.68 billion rupiah (S$12.2 million) for the third quarter ended Sept 30, continuing to be adversely affected by weak commodity prices.

The net loss was compared with a net profit of S$8.74 billion a year ago, according to the agribusiness' results posted on Thursday.

Loss per share stood at 90 rupiah for the quarter, from earnings per share of 6.3 rupiah a year ago.

No dividend has been declared for the current financial period, and the company will review this at the year end, it said.

Revenue for Q3 fell 3.1 per cent to 3.59 trillion rupiah, from 3.71 trillion rupiah a year ago.

Revenue for its plantation division came in flat for the quarter due to lower selling prices of palm products and sugar, despite a higher sales volume. Meanwhile, revenue for its edible oils and fats division fell 6 per cent in the quarter.

For the third quarter, the group recognised 16 billion rupiah in loss from its associate companies, compared with a 6 billion rupiah loss a year ago. This was mainly due to losses from FP Natural Resources, which reflects intense competition and higher interest expenses regarding the Roxas sugar business in the Philippines.

The group's share of profit from joint ventures fell 54.3 per cent to 22 billion rupiah from 48 billion rupiah the year before, due to foreign exchange losses.

IndoAgri said ongoing US-China trade tensions continue to affect global trade flows and economic growth - negatively impacting agricultural commodities prices.

Crude palm oil prices will also remain volatile with demand projected from China and India as key import markets. The relative price of palm oil to crude oil also affects discretionary biodiesel demand.

"Against this backdrop of a volatile commodity price environment, we prioritise our capital expenditure investment in growth area and focus on cost control measures and other innovations to increase productivity," the company added.

IndoAgri shares closed at S$0.32 on Thursday, up 0.5 Singapore cent or 1.6 per cent.