Indofood Sukses Makmur

Indofood Sukses Makmur Tbk (Indofood) is a company that has operations in each stage of Indonesia's food manufacturing process: from the production of raw materials and its processing to consumer end products on the retailer’s shelf. Indofood is Indonesia's largest food processing company and the world's biggest producer of instant noodles. The company forms part of the Salim Group, Indonesia's biggest conglomerate, founded by Sudono Salim.

Profile

Industry Sector Consumer Goods Industry
Industry Sub Sector Food and Beverages
Established 14 August 1990
Listed 14 July 1994
Listed Company Code INDF
Listed Shares 8,780,426,500
Dividend Yes
Major Shareholders (>5%) CAB Holdings Limited (50.07%)
Key Subsidiaries Indofood CBP Sukses Makmur
Indofood Fritolay Makmur
IndoAgri
Nestlé Indofood Citarasa Indonesia
Indolakto
PepsiCola Indobeverages
Sari Incofood Corporation
Quaker Indonesia
Surya Rengo Container

Main Commodities


Stock Quote Indofood Sukses Makmur - INDF:

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Business Summary

Indofood Sukses Makmur engages in operations in five complementary strategic business units. The table below lists these units and shows their contribution shares to total sales of the company.


Sales Contribution of Indofood's Business Units:

      2011     2012     2013
Consumer Branded Products Group    42.3%    43.1%    42.7%
Bogasari
   25.8%    25.0%    25.8%
Agribusiness Group    24.2%    24.1%    19.1%
Distribution Group     7.7%     7.8%     7.9%
Cultivation & Processed Vegetables       -       -     3.7%

Source: Indofood Sukses Makmur, Annual Report 2013

• Consumer Branded Products Group

The consumer branded products group comprises five separate divisions, namely noodles, food seasonings, dairy, snack foods, and nutrition & special foods. Its operations are conducted by subsidiary Indofood CBP Sukses Makmur (ICBP), which was listed on the Indonesia stock exchange (IDX) on 7 October 2010.

• Bogasari

Bogasari is the largest integrated flour miller in Indonesia. Its two mills are located in Jakarta and Surabaya (Java). Its operations are supported by shipping operations (for wheat transport) and a textile facility (for the production of bags). Bogasari not only produces a variety of wheat flour for different purposes under prominent brands but is also the largest pasta producer in South East Asia (the La Fonte brand). Its pasta products are exported to various countries, including the Philippines, Korea and Japan.

• Agribusiness Group

Indofood's Agribusiness Group is a vertically integrated operation chain that owns a number of leading brands derived from palm oil. Its operations cover the whole value chain from research and development, oil palm seed breeding and cultivation to milling, refining, branding and marketing of cooking oil, margarine, shortening and other palm oil derivative products. In addition, the group also engages in rubber, cocoa, sugar cane as well as tea plantations.

• Distribution Group

The Distribution Group (which also distributes third-party products) has one of the most extensive distribution networks of Indonesia, penetrating almost every corner of the archipelago. The number of stock points has been expanded aggressively since 2005. Stock points are located in areas with a high density of retail outlets, including traditional markets.

Cultivation & Processed Vegetables

In 2013, the company added the Cultivation and Processed Vegetables business segment to its corporate structure. Activities in this segment are conducted by China Minzhong Food Corporation Limited (CMFC), an integrated vegetable processing company in China which is listed on the Singapore stock exchange (SGX).


International Aspirations

Indofood is one of the (relatively) few companies in Indonesia that looks beyond the domestic market. Its aspirations to become a global player can be seen in the establishment of joint venture companies with Singapore-based Asahi Group Holdings Southeast Asia Pte. Ltd. (to enter the fast growing non-alcoholic beverage market) and a Memorandum of Understanding with Japan's Tsukishima Food Industry, Co., Ltd. (to engage in the production of value-added oil and fats for the food service industry).

In 2013, Indofood acquired 50 percent of the shares in Companhia Mineira de Acucar e Alcool Participacoes (CMAA), a Brasilian sugar and ethanol producer, and expanded its stake in CMFC to 29.33 percent.


Financial Highlights of Indofood Sukses Makmur:

      2008     2009     2010     2011     2012     2013
Net Sales  38,799.3  37,397.3  38,403.4  45,768.1  50,201.5  57,732.0
Gross Profit
  8,976.9  10,456.5  12,487.0  12,664.1  13,591.3  14,329.9
Income from Operations   3,796.1   4,623.7   6,306.6   6,847.4   6,877.8   6,718.0
EBITDA     n.a.     n.a.   7,965.0   8,360.0   8,567.8   8,795.9
Net Income   1,034.4   2,075.9   2,952.9   3,077.2   3,261.2   2,503.8
Total Assets  39,591.3  40,383.0  47,276.0  53,716.0  59,389.4  78,092.8
Total Liabilities  26,432.4  24,886.8  22,423.1  22,114.7  25,249.2  39,719.7
Earnings per share¹     120     236     336     350     371     285
Dividend per Share         133     175     142  

in billion IDR rupiah, except stated otherwise
¹ in IDR rupiah
Source: Indofood Sukses Makmur, Annual Report 2013


Chronological Bonds Issuance:

Indofood Sukses Makmur Bonds

Future Perspectives of the Indonesian Consumption Sector

Indonesia's recent economic growth is to a large extent due to Indonesia's robust domestic consumption. Not only does Indonesia contain one of the world's most populous populations, but it also constitutes a population that is burgeoning; the country's middle class is expanding rapidly and it shows in their consuming habits. A larger portion of people's disposable income can be spent on consumer products. As such, businesses that largely rely on Indonesia's consumer base have good prospects. McKinsey expects that Indonesia will move from its current position as the world’s 16th largest economy to the 7th largest economy in the year 2030, partly supported by domestic consumption as income per capita continues to rise in combination with rapid urbanization. The size of Indonesia's consuming class is expected to more than triple over the same period, from 45 million in 2012 to 135 million in 2030. As one of the largest food companies in Indonesia, Indofood is well-positioned to capture these opportunities.


Future Projection of Indofood Sukses Makmur's Financial Highlights:

       2013      2014F      2015F      2016F
Net Sales   57,732.0    68,848.0    76,928.0    84,287.0
EBITDA    8,235.0    10,377.0    12,322.0    14,032.0
Net Income    2,503.8     4,110.0     4,715.0     5,239.0
PE Ratio (x)      18,0       14,6       12,7       11,5
P/BV (x)      2,53       2,26       2,05       1,87

in billion IDR rupiah, except stated otherwise
¹ in IDR rupiah
Source: CIMB Securities

Contact Details

Sudirman Plaza, Indofood Tower 27th Floor
Jalan Jenderal Sudirman Kav. 76-78
Jakarta 12190
Phone: +62 21 5795 8822
Fax: +62 21 5793 7373
Email: werianty@indofood.co.id
www.indofood.com

Location