14
INDOFOOD AGRI RESOURCES LTD
ANNUAL REPORT 2014
BUSINESS
OVERVIEW
IndoAgri is a leading
diversified and vertically
integrated agribusiness
that spans the entire
supply chain, from
plantation management
and crop production,
through to refining,
branding and marketing
of edible oil products.
As at 31 December
2014, our planted area
covered 300,050 hectares,
which included 246,055
hectares of oil palm,
21,697 hectares of rubber,
13,062 hectares of sugar
cane, 16,169 hectares of
industrial timber and 3,067
hectares of other crops.
In Indonesia, the Group’s
Plantation Division owns
and operates 22 palm oil
mills, four crumb rubber
processing facilities, three
sheet rubber processing
facilities, two sugar mills/
refineries, one cocoa mill
and one tea mill. The Group
also has sugar operations
in Brazil through a 50-50
joint venture with CMAA,
and in the Philippines
through an indirect interest
in RHI. The Plantation
Division remains IndoAgri’s
dominant business unit,
contributing over 90% to
the Group’s EBITDA.
The Group’s Edible Oils
& Fats Division owns and
operates five Crude Palm
Oil (CPO) refineries across
Indonesia, with a total
annual CPO processing
capacity of 1.4 million
tonnes.
FINANCIAL HIGHLIGHTS
Despite the general decline in food
commodity prices during 2014, the
Group maintained positive results
with consolidated revenue up 13% to
Rp15.0 trillion. The improved sales
result was principally attributable to a
strong contribution from the Plantation
Division, driven by higher sales volumes
and commodity prices for palm products
i.e. CPO and Palm Kernel (PK).
Resultingly, IndoAgri’s 2014 gross profit
has increased by 36% to Rp4.4 trillion.
Gross profit margin for 2014 was 29.2%
compared to 24.1% in 2013.
The Group made a higher profit from
operations of Rp2.5 trillion in 2014, a
52% increase over the preceding year, due
mainly to improved gross profit and lower
foreign exchange losses. This was partly
offset by higher operating expenses and
share of losses of associate companies.
Net profit after tax (NPAT) was Rp1.3
trillion, up 44% from 2013. This was
primarily due to higher profit from
operations, partly offset by higher
financial expenses and higher effective tax
arising from irrecoverable tax losses and
non
-
tax deductible expenses. The Group’s
attributable profit grew 45% to Rp0.8
trillion in 2014.
OPERATIONAL HIGHLIGHTS
Plantation Division: Oil Palm
The Group’s oil palms occupied 82% or
246,055 hectares of total planted area by
the end of 2014. Of this, new plantings
accounted for 6,350 hectares, compared
to 9,791 hectares in 2013. Total Fresh Fruit
Bunches (FFB) production of 4,372,000
tonnes in 2014 represented a 16% increase
over the previous year’s 3,761,000 tonnes,
whileCPOproductiongrew18%to956,000
tonnes in 2014. This was supported
particularly by higher palm production in
South Sumatra and Kalimantan, as well as
increased purchasing of external FFB.
Certified CPO production of 332,000
tonnes represented approximately 35%
of the Division’s total CPO output in 2014,
demonstrating the Group’s continued
commitment to sustainable agriculture.
