China Minzhong, Indofood Agri report lower earnings

CHINA Minzhong Food Corp and Indofood Agri Resources - both Singapore-listed units of Indonesia's Indofood Sukses Makmur - announced sharply lower profits on Wednesday.

China Minzhong said that earnings for the three months to Sept 30 were 48.38 million yuan (S$9.8 million), down 60 per cent from a year ago. This came despite revenue for the first quarter rising 4 per cent to 637.8 million yuan.

The vegetable grower blamed the lower profit margins for processed vegetables, beverages, fresh vegetables produce, as well as an increase in marketing and advertising expenses.

Earnings per share were 7.4 fen, from 21.8 fen a year ago, while net asset value per share was 7.30 yuan at Sept 30, from 7.28 yuan at June 30.

China Minzhong had come under attack by a United States short-seller in late August, until a general offer by Indonesian food giant Indofood Sukses in early September supported its share price.

Palm oil company Indofood Agri, another unit of Indofood Sukses, on Wednesday said that third quarter earnings fell 52.4 per cent to 122.85 billion rupiah as revenue fell 13.1 per cent to 3.076 trillion rupiah.

Indofood Agri suffered from lower average selling prices for plantation crops, and rising wages which led to higher production costs.

Earnings per share were 86 rupiah for the quarter, from 179 rupiah last year. Net asset value per share was 9,866 rupiah at Sept 30, from 9,619 rupiah at the end of last year.

The results were announced before markets opened. During the session Indofood Agri's shares rose 0.5 cent to 89 cents.