July 31, 2007

Profit for CPF's Indonesian subsidiary hits US$10 million in first half

Indonesia's largest poultry feeds company PT Charoen Pokphand Indonesia, a subsidiary of Thailand's Charoean Pokphand Foods, announced net profit in first half of the year growing 2.2 percent on-year to 95.0 billion rupiah (US$10.3 million), thanks to stronger sales.

Charoen finance director Thomas Effendy told Thomson Financial that the first half results were in line with the company's expectations.

Animal feeds accounted for 73 percent of sales during the first half, while day-old chicks (DOC) made up 13 percent.

Results would have been better if foreign exchange gains, which had helped offset financing charges and boosted the previous year's net profit, had not fallen in the first half this year. The drop sharply curtailed profit growth.

Forex gains dropped from 60.22 billion rupiah last year to 9.48 billion rupiah in the first half to June. A sharp increase in other charges also curbed profit growth.

Sales rose 18 percent on-year to 3.71 trillion rupiah (US$403 million) while operating profit increased 12.5 percent to 185.67 billion (US$20 million).

The company expects full year sales to rise 22 percent to 7.7 trillion rupiah (US$830 million) and net profit to grow 15 percent to 180 billion (US$19.55 million) as it expects a stronger second half compared to the first half.