Indofood Agri's net profit wrecked by massive forex loss

Weak rupiah is the culprit.

Indofood Agris's Q1 results were eroded by a massive forex loss brought about by the Indonesian rupiah's persistent weakness.

CIMB analyst Ivy Ng noted that the group booked a forex loss of RP 116b ($11.9m) in the first quarter.

This exacerbated the group's already weaker plantation earnings.

IndoAgri reported that its net profit crashed by a whopping 80.7% to $4m (Rp 35b) in Q1, while revenue fell 16% year-on-year to of $282m (Rp 163b).

Ng believes that IndoAgri's share buyback programme will support its share price in the near-term.

"We see share price support from the group’s share buyback programme and its net book value of $1.06 as at 31 Mar 2015. The group bought back 13m shares in 1Q15 at average price of S$0.728," Ng noted.