JAKARTA, INDONESIA — PT Indofood Sukses Makmur Tbk announced on April 30 that first-quarter net profit was up 10.8% to Rp815.0 billion from Rp735.6 billion.

“Despite lower crude palm oil (CPO) and rubber prices, which impacted our Agribusiness Group performance, and demanding market situation for our Consumer Branded Products and Bogasari Groups, we continue to register growth on our bottom line,” said Anthoni Salim, the president director and chief executive officer of Indofood. “This demonstrated our strong business model and our resilience to the changing market dynamics.”

Core profit increased 10.9% to Rp805.6 billion from Rp726.4 billion in the same period last year. Earnings per share were Rp93.

Consolidated net sales grew 9.9% to Rp11.83 trillion, while income from operations grew 0.4% to Rp1.78 trillion.

The improvement in sales was contributed by all the Strategic Business Group, namely Consumer Branded Products (CBP), Bogasari, Agribusiness and Distribution. CBP Group continued to lead in sales contribution, followed by Bogasari, Agribusiness and Distribution by contributing 44%, 25%, 23% and 8% respectively to consolidated net sales.

The CBP Group, which consists of Noodles, Dairy, Food Seasonings, Snack Foods and Nutrition & Special Foods Division, posted 13.4% growth in total sales value driven by sales growth in almost all divisions within the group. Total sales value of Bogasari Group increased 5.9%, mainly on higher volume. The Agribusiness Group posted 10.2% growth in total sales value primarily driven by higher sales volume of edible oils & fats products. Distribution Group also recorded total sales value growth of 8.1%, partly due to higher sales of CBP Group.

Gross profit decreased slightly to Rp3.27 trillion from Rp3.32 trillion mainly due to lower results achieved by Agribusiness Group attributable to the decline in CPO and rubber prices; gross margin contracted 320 basis point to 27.7%. Income from operations grew 0.4% to Rp1.78 trillion from Rp1.77 trillion on lower operating expenses; however operating margin decreased to 15.0% from 16.5%.