IndoAgri's profit slumps 6.1%

Lower selling prices are to blame.

According to an SGX release, IndoAgri achieved a 7.9% growth in 3Q12, reflecting principally the combined effects of higher sales volume of palm products and contribution from sugar operations.

On year-to-date basis, total revenue grew 11.7% over last year mainly attributable to positive growth from both business divisions.

Group’s gross profit rose 1.5% in 3Q12 yoy mainly due to higher sales volume of palm products and contribution from sugar operations.

However 9M12 gross profit declined 6.1% primarily attributable to lower average selling prices for plantation crops and higher cost of production.

The decline was partly negated by higher profit contribution from Edible Oils & Fats Division and sugar operations. Attributable profit came in 22.0% higher in 3Q2012 mainly due to higher gross profit, as compared 3Q2011 which included certain one-off expenses relating to SIMP listing and an amalgamation of a wholly-owned subsidiary with the Company.

On year-to-date basis, attributable profit declined 14.1% yoy mainly attributable to lower gross profit, higher operating expenses and lower foreign exchange gains.

“Our Group posted another quarter of positive sales and profit growth, particularly drive by the contribution from sugar operations following the commencement of our first full sugarcane crushing season in May 2012. On production front, we continued to report positive growth with FFB nucleus and CPO in 9M12 growing 7% and 5% yoy to 2,158,000 tonnes and 639,000 tonnes, respectively. While edible oil business achieved a 6% yoy sales volume increase in 9M12, supported by the expanded refining capacity”, commented Mr Mark Wakeford, CEO and Executive Director.