16.
INDOFOOD AGRI RESOURCES LTD
ANNUAL REPORT 2015
GROUP PERFORMANCE
REVIEW
dipped 49% in 2015 on lower gross profit, higher selling and
distribution expenses, losses arising from changes in fair
values of biological assets, higher foreign exchange losses
and share of losses from CMAA.
The Group reported a 78% decline in net profit to Rp299
billion in 2015, due primarily to lower profit from operations.
Excluding the losses from foreign currency exchange and
biological assets, the Group achieved a core profit of Rp555
billion in 2015, a 60% decrease over last year.
In light of the global economic slowdown and weaker
commodity prices, the Group tightened its cash flow and
focused its strategies on cost control initiatives, prioritising
on immature plantings and the expansion of infrastructure
and facilities for organic growth.
FINANCIAL POSITION
Total non-current assets of Rp35.3 trillion in December
2015 were 6% or Rp2.0 trillion higher than December 2014.
The increase was principally attributable to the following:
• Additions of biological assets mainly due to oil palm new
plantings and immature plantations, as well as capital
expenditure relating to housing and infrastructure,
machineries and equipment, as well as expansion of
production capacity;
• Recognition of higher deferred tax assets relating to
higher employee benefits liabilities and tax losses
carried forward;
• Increase in investment in associate companies of
Rp0.8 trillion relating to (a) additional capital injection
of US$15.3 million (equivalent to Rp197 billion) in
FPNRL; and (b) acquisition of a 50% interest in AAM for
US$39 million (equivalent to Rp519 billion) in June 2015
by Lonsum; and
• Higher advances for plasma project.
The increase was partly offset by lower advances and
prepayments relating to the purchase of fixed assets, and
lower carrying value of investment in CMAA due to foreign
currency translation loss and share of losses in 2015.
Total current assets of Rp5.4 trillion in December 2015
were 21% lower than Rp6.8 trillion in December 2014.
The decline was mainly due to lower cash levels. However
this was partially offset by higher inventories arising from
higher CPO and sugar at plantations, as well as higher CPO
stocks at refineries.
As of December 2015, total current liabilities of Rp6.5
trillion were 7% lower than last year’s Rp7.0 trillion. This
was mainly attributable to the refinancing of certain short-
term facilities to long-term loans, and lower income tax
payable in line with lower profit in 2015.
An employee harvesting FFB
Oil palm nursery at Riau
