Indofood Agri Resources 2015 earnings hit by weak commodity prices

SINGAPORE - Indofood Agri Resources raked in lower earnings in the fourth quarter of 2015, as plunging commodity prices hurt its agricultural businesses .

Revenue in the three months to Dec 31 dropped 10 per cent to $387 million compared with a year ago. Net profit was $32 million, down 23.2 per cent year-on-year.

For the full year, revenue dropped 7.5 per cent year-on-year to $1.42 billion while net profit slumped by 77.5 per cent to $31 million, the Indonesian agribusiness announced on Feb 26.

Earnings per share for the full year were 0.4 cents, down from 5.5 cents a year ago. Net asset per share was 105.7 cents as at Dec 31, down from 105.9 cents a year ago.

While production volume rose last year, "results remained soft, affected negatively by weakening commodity prices in all three of our main crops - palm oil, rubber and sugar, as well as forex losses",the company said.

"Our outlook for the agribusiness remains optimistic but we are cautiously managing our activities during this challenging period to mitigate risks and exposures. We will place a stronger emphasis on extracting the optimal from our value chain, and proactively improve operations, increase yields, raise productivity and control costs," it added.

Indofood Agri Resources shares closed flat at 43.5 cents ahead of the results announcement.