INDOFOOD AGRI RESOURCES LTD
ANNUAL REPORT 2015
37.
In 2015, we entered the branded bulk market, and launched an
innovative and first-of-its-kind garlic margarine in Indonesia.
In addition, the construction of a new 200 tonnes per day
margarine plant was completed at the Tanjung Priok refinery.
Revenue from the EOF Division declined 14% to Rp8.4 trillion
in 2015 due mainly to lower sales volume and lower average
selling prices of edible oils and fats products. However,
the Division achieved higher EBITDA earnings on a more
competitive pricing strategy in 2015. Branded consumer
products contributed over half of this revenue, while sales
to industrial customers and third-party brands accounted
for the balance. We will continue to work on new product
offerings and further develop the distribution network to
deepen our market penetration.
Sales contribution from the EOF Division accounted for 61%
and 66% of the Group’s external sales in 2015 and 2014
respectively. The revenue derived from Indonesia was 88%,
while the balance came fromexports to 25 countries, including
China, Nigeria, East Timor, the Philippines, Malaysia, United
Arab Emirates, Sri Lanka, Papua New Guinea and Myanmar.
2016 OUTLOOK
In the year ahead, we expect to further utilise our downstream
production by enhancing the Division’s specialty fat output and
production capability to meet rising demand. The Division will
also continue to improve its pricing competitiveness, review
its supply chain to enhance customer service, and grow the
distribution network.
We are expanding the capacity of our Surabaya for completion
refinery for completion by 1,000 tonnes per day, scheduled
in 2017. The additional production capacity will enable the
Group to capture sales opportunities in Eastern Indonesia.
Cookies made using Palmia margarine
Filling of cooking oil into refillable packaging
