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oodles have again boosted the fortunes of the PT Indofood Sukses Makmur (INDF) group, as the nation’s largest food manufacturer is reporting net sales growth of 2.5 percent to Rp 24.58 trillion (US$2.58 billion) in the first half from the same period last year.

The firm’s subsidiary PT Indofood CBP Sukses Makmur (ICBP), the world’s leading instant noodle producer, comprised 44.4 percent of its parent company’s net sales at Rp 10.92 trillion, up 16 percent from a year before.

“Indofood CBP’s higher net sales were driven by increasing sales volume for most of its divisions, especially the instant noodle division,” Indofood group president director and chief executive officer Anthoni Salim said in a press statement.

Indofood CBP also reported that its costs of goods sold was up 15.6 percent to Rp 8.09 trillion due to
increasing raw material prices and production expenses, Anthoni added.

In the first six months of the year, Indofood CBP booked Rp 7.61 trillion in net sales from its line of instant noodle products, such as Indomie, Supermi and Pop Mie. Net noodle sales were up 16.3 percent from last year.

Other than its noodleworks, Indofood CBP also runs dairy, snack and seasoning businesses with brands ranging from Indomilk to Chitato.

Between January and June, its dairy and snack divisions booked Rp 2 trillion and Rp 741.38 billion in net sales respectively, while the seasoning division booked Rp 626.46 billion.

Indonesia remained the biggest market for Indofood CBP, comprising 91 percent of its total net sales, although the firm also said that exports were up to all its overseas markets, identified as Australia, Nigeria, Papua New Guinea, the Philippines, Saudi Arabia Thailand and Vietnam.

Exports to the Philippines experienced the highest growth, up 78.8 percent to Rp 55.63 billion from the same period in 2011.

Indofood CBP’s total net profits were Rp 1.14 trillion in the first half, 15 percent higher than last year.

The firm reported total assets of Rp 16.8 trillion as of June, with liabilities of Rp 5.88 trillion and equities of Rp 10.92 trillion.

Meanwhile, Bogasari, Indofood’s subsidiary producing wheat flour and pasta, reported that net sales grew 5.2 percent to Rp 7.68 trillion, comprising 24 percent of Indofood’s total net sales.

“Bogasari reported a higher sales volume of wheat flour as a result of lower commodity prices in the global market,” Anthoni said.

While Indofood CBP and Bogasari reported positive growth, falling prices for palm oil and rubber slashed net profits for PT Salim Ivomas Pratama and subsidiary PT PP London Sumatra Indonesia in the first half.

Salim Ivomas’ net profits were down 22 percent to Rp 686.17 billion, which was attributed to lower average selling prices for palm and rubber products and higher costs.

Despite lower net profits, Salim Ivomas recorded that net sales revenues rose 13.8 percent to Rp 6.98 trillion in the first half from a year earlier.

The net sales growth was supported by higher sales of crude palm oil, palm kernels, and edible oil and fat products.

London Sumatra Indonesia saw its net profits plunge 27.9 percent to Rp 639.2 billion from a year earlier due to net sales that declined 6.4 percent to Rp 2.23 trillion in the first half. The firm cited lower commodity prices, mainly for rubber and palm products, as the main cause of the decline.

In total, Indofood group’s net profits were Rp 1.68 trillion between January and June, up 6.5 percent, while its total costs of goods were up 15 percent to Rp 17.85 trillion on higher sales and distribution expenses.

Indofood group reported total assets of Rp 56.78 trillion as of June, liabilities of Rp 24.72 trillion and equities of Rp 32.06 trillion.

Indofood group’s shares closed at Rp 5,400 apiece on Tuesday, up 0.93 percent from the previous day. (tas)