Indofood Agri Resources (5JS) H2 2023 earnings summary

Executive summary

• FY23 sales fell 10% to Rp16,003bn and NPAT fell 29% to Rp936bn, mainly on lower gross profit from lower ASPs; 2H23 NPAT rose 9% YoY.

• Adjusted EBITDA declined 20% to Rp3,644bn; net debt/EBITDA improved to 0.71x from 1.04x at Dec 2022.

Financial highlights

• FY23 gross profit was Rp3,282bn, down 28%; adjusted EBITDA was Rp3,644bn, down 20%; attributable profit was Rp614bn, down 20%.

• Fully diluted EPS was Rp440, down 20%; FY23 gross margin was 21%, EBITDA margin 23%, and net profit margin 6%.

• 2H23 sales declined 14% to Rp8,394bn and gross profit declined 14% to Rp2,049bn; NPAT rose 9% to Rp844bn.

Outlook and guidance

• Plantation priorities: focus capex on critical areas, improve crop management and cost control, raise FFB yields, and continue mechanisation and IT initiatives.

• Edible oils and fats priorities: recover sales volumes through competitive pricing, thematic advertising, and stronger in-store product visibility.