FIRST PACIFIC COMPANY LIMITED Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
OVERSEAS REGULATORY ANNOUNCEMENT
Please refer to the attached filings made by Indofood Agri Resources Ltd. to the Singapore Stock Exchange, in relation to (i) Press Release for the 2Q2016 Results; and (ii) Unaudited Financial Statements for the second quarter ended 30 June 2016.
Dated this the 12th day of August, 2016
As at the date of this announcement, the board of directors of First Pacific Company Limited comprises the following directors:
Executive Directors:Manuel V. Pangilinan, Managing Director and CEO
Edward A. Tortorici Robert C. Nicholson
Non-executive Directors: Anthoni Salim, Chairman Benny S. Santoso
Tedy Djuhar
Ambassador Albert F. del Rosario
Independent Non-executive Directors: Prof. Edward K.Y. Chen, GBS, CBE, JP Margaret Leung Ko May Yee, SBS, JP Philip Fan Yan Hok
Madeleine Lee Suh Shin
8/12/2016 Financial Statements and Related Announcement::Second Quarter and/ or Half Yearly Results
Issuer/ Manager | INDOFOOD AGRI RESOURCES LTD. |
Securities | INDOFOOD AGRI RESOURCES LTD. SG1U47933908 5JS |
Stapled Security | No |
Announcement Title | Financial Statements and Related Announcement |
Date & Time of Broadcast | 12Aug2016 01:49:23 |
Status | New |
Announcement Sub Title | Second Quarter and/ or Half Yearly Results |
Announcement Reference | SG160812OTHRNFQ4 |
Submitted By (Co./ Ind. Name) | Mak Mei Yook |
Designation | Company Secretary |
Description (Please provide a detailed description of the event in the box below Refer to the Online help for the format) | IndoAgri's 1H 2016 Results and Press Release Please see attached. |
For Financial Period Ended | 30/06/2016 |
Attachments | IFAR1H16Result.pdf IFAR1H16Press.pdf Total size =245K |
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FOR IMMEDIATE RELEASE
IndoAgri posts 2Q16 attributable profit of Rp30 billion (S$3.0 million)HIGHLIGHTS:
- Revenue down 14% yoy in 2Q16 on lower sales achieved by the Plantation Division due to weaker production arising from the impact of El-Nino in 2015
- Group achieved improved profit on stronger contribution from the Edible Oils & Fats (EOF) Division and foreign currency gain
- Attributable profit improved from a loss in 2Q15 to Rp30 billion (S$3.0 million) in 2Q16
SINGAPORE - 12 August 2016 - SGX Mainboard-listed IndoAgri (the "Group"), a diversified and integrated agribusiness group and manufacturer of leading brands of edible oils and fats products in Indonesia, posted a 14% and 1% yoy decline in revenue in 2Q16 and 1H16 on lower sales from the Plantation Division. This was however partly offset by stronger sales reported by the EOF Division.
Our Plantation Division reported a 18% decline in revenue over 2Q15 on lower sales volume of palm products, this was mainly attributable to lower palm production arising from the El-Nino impact in the second half of 2015. The weaker output was partly offset by the higher average selling prices of palm products. 1H16 revenue declined 11% yoy, reflecting mainly the effects of lower sales volume and average selling prices of CPO and rubber. The sales decline was partly offset by higher sugar sales achieved during the quarter.
EOF Division continued to perform well with revenue grew 5% in 2Q16 and 8% in 1H16 mainly attributable to higher sales volume of edible oil products, but partly offset by lower selling prices.
Rp' billion | S$' million 1 | |||||||||
2Q16 | 2Q15 (Restated) | ▲% | 1H16 | 1H15 (Restated) | ▲% | 2Q16 | 2Q15 (Restated) | 1H16 | 1H15 (Restated) | |
Revenue | 3,568 | 4,133 | (13.7) | 6,715 | 6,792 | (1.1) | 365 | 423 | 688 | 696 |
Gross profit | 720 | 776 | (7.2) | 1,253 | 1,391 | (9.9) | 74 | 79 | 128 | 142 |
Gross margin (%) | 20.2% | 18.8% | 18.7% | 20.5% | 20.2% | 18.8% | 18.7% | 20.5% | ||
EBITDA 2 | 577 | 668 | (13.7) | 983 | 1,221 | (19.4) | 59 | 68 | 101 | 125 |
EBITDA margin (%) | 16.2% | 16.2 % | 14.2 | 14.6% | 18.0% | 43.7 | 16.2% | 16.2% | 14.6% | 18.0% |
Profit from operations | 230 | 202 | 539 | 375 | 24 | 21 | 55 | 38 | ||
Profit before taxation | 84 | 45 | 88.1 | 251 | 91 | 174.3 | 9 | 5 | 26 | 9 |
Net profit after tax | 23 | (9) | n/m | 118 | (0) | n/m | 2 | (1) | 12 | (0) |
Attributable profit | 30 | (33) | n/m | 125 | (29) | n/m | 3 | (3) | 13 | (3) |
EPS (fully diluted) - Rp/S$ cents | 21 | (24) | n/m | 89 | (21) | n/m | 0.2 | (0.2) | 0.9 | (0.2) |
n.m. denotes "Not Meaningful"
* The restated figures were related to the amendments FRS 16 and FRS 41 Agriculture - Bearer Plants
1 Income Statement and Balance Sheet items are converted at exchange rates of Rp9,765/S$1 and Rp9,771/S$1, respectively 2 Earnings before interests and tax expense, depreciation and amortisation, and gain/loss from changes in fair value of biological assets and foreign exchange gain.
In 2Q16 and 1H16, the Group recorded lower EBITDA (excluding the effect of forex) of 14% and 19% yoy. The decline was mainly due to lower gross profit arising lower sales volume of palm products and higher operating expenses.
The Group reported attributable profit of Rp30 billion (S$3.0 million) in 2Q16 and Rp125 billion (S$13.0 million) in 1H16, reversing from a net loss position in 2015. The improved profit was mainly driven by stronger contribution from the EOF Division, biological assets gain and foreign currency gain.
"The effects of the prolonged drought in the second half last year have impacted our 1H16 FFB nucleus and CPO production, declining 16% and 21% yoy to 1,270,000 tonnes and 353,000 tonnes respectively. In line with the lower production, the Group reported lower Plantation revenue and profitability in 1H16, but this was offset by a strong contribution from the EOF Division, biological assets gain and foreign currency gain. In 2016, we will prioritise our capex on immature plantings of around 51,000 hectares and the expansion of milling facilities for organic growth.", commented Mr Mark Wakeford, CEO and Executive Director.INDUSTRY OUTLOOK AND FUTURE PLANS
The market conditions remain challenging for the agricultural and commodity sector. Agricultural commodity prices remain soft and slower growth in some key markets like China have led to a prolonged period of volatility and uncertainty. Global developments remain uncertain and unpredictable. These circumstances have aggravated the complex mix peculiar to any agribusiness such as the weather, export restrictions, the higher co-relationship between the prices of crude oil and various commodities, and the performance of competing crops such as soybean oil.
As a diversified and vertically integrated agribusiness with a dominant presence in Indonesia, our operations continue to be supported by positive market drivers that include good demographics, strong economic fundamentals, and a fast-growing middle class with rising discretionary incomes.
Our outlook for the agribusiness remains optimistic but we are cautiously managing our activities during this challenging period to mitigate risks and exposures. We will place a stronger emphasis on extracting the optimal from our value chain, and proactively improve operations, increase yields, raise productivity and control costs.
--The End ---
ABOUT INDOAGRI
Indofood Agri Resources Ltd. ("IndoAgri") is a diversified and integrated agribusiness group with principal business operations that range from research and development, breeding and cultivation of oil palms, to the milling and refining of crude palm oil, and the marketing and distribution of cooking oil, margarine, shortening and other derivative products. The Group also engages in the cultivation of other crops such as rubber, sugar cane, cocoa and tea.
As of end June 2016, IndoAgri has 299,497 hectares planted with oil palm, rubber, sugar cane, cocoa and tea.
For more information please visit our website at: www.indofoodagri.com.
First Pacific Company Limited published this content on 12 August 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 11 August 2016 23:47:08 UTC.
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