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Charoen Indonesia looks to profit in 2016 due to stable rupiah
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Poultry feed as seen in the Charoen Pokphand Indonesia warehouse. (Courtesy of https://cp.co.id/-)
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ublicly listed company Charoen Pokphand Indonesia voiced increasing confidence with regard to the 2016 business year, explaining that the stable rupiah will help to reduce the cost of importing soybeans from the US.
Charoen Indonesia finance director Ong Mei Sian said most of the company’s revenue arose from its poultry feed business, which amounts to 76 percent of the company’s annual revenue. Aside from corn, soybeans are the main raw material used by the company for its products.
"Half of our cost is due to foreign currency. We booked Rp 500 billion [US$37.32 million] in losses due to currency fluctuation. We are more positive this year as the rupiah has been stable," he told thejakartapost.com on Wednesday.
In the first quarter of the year, poultry feed contributed Rp 5.5 trillion of the company’s Rp 9.2 trillion total revenue. Meanwhile the day-old chicks business, unaffected by currency fluctuation, contributed Rp 1.2 trillion during the period.
"Our food and beverage business is still small. It only contributed Rp 811 billion in sales. As this business started in October 2015, we estimate the contribution will continue to be around one percent for the first three-years," said Charoen Indonesia president director Tjiu Thomas Effendy.
The company’s sales in the first quarter rose 22.7 percent (yoy) while net income increased 5.2 percent to Rp 946 billion. Charoen Indonesia targets 15 percent sales growth in 2016. (ags)
