Indofood Agri Resources Ltd - Annual Report 2014 - page 36

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INDOFOOD AGRI RESOURCES LTD
ANNUAL REPORT 2014
The Edible Oils & Fats (EOF)
Division manufactures
and markets IndoAgri’s
downstream products,
which include cooking oils,
margarine, shortening,
crude coconut oil (CNO)
and other by-products
derived from oil palm
refining and fractionation.
The Group owns and operates
five refineries with a total
CPO processing capacity of
1.4 million tonnes per
year. These refineries are
located strategically in major
Indonesian cities and/or
near deep-water ports that
provide logistical advantages.
EDIBLE OILS & FATS REVIEW
In Indonesia, our consumer cooking oils
are marketed under the leading brands
of Bimoli, Bimoli Spesial, Delima and
Happy, while our consumer margarine
and shortening are packed and sold
under the Palmia and Amanda brands.
The Division also produces industrial
pack cooking oils, which is mainly sold on
an unbranded basis to Indofood and other
manufacturers in the F&B industry. Our
industrial pack margarine and shortening
are promoted to confectioners, bakeries
and other food manufacturers under our
Palmia, Simas, Amanda, Malinda and
Delima brands.
In line with IndoAgri’s vertically
integrated agribusiness model, the CPO
raw materials used in the production of
cooking oil, margarine and shortening
is mainly supplied by the Plantation
Division.
The distribution channels of our parent
company are leveraged to supplement
our market penetration efforts. These
include direct sales channels, as well as
local and national distributors serving
approximately 370,000 retail outlets
across Indonesia.
The Bimoli brand has achieved Platinum
Level for the Indonesia Best Brand Award
(IBBA) from 2002 to 2014 and Diamond
Level for the Indonesia Customer
Satisfaction Award (ICSA) from 2000 to
2014.
2014 REVIEW
The Division processed approximately
877,000 tonnes of CPO, including
70% from our own plantations in 2014,
compared to 59% in 2013. We also took
delivery of new CPO storage tanks and a
new 200 tonne per day margarine plant
at Tanjung Priok refinery during the year.
Total revenue for the Division grew 14%
to Rp9.8 trillion in 2014 on higher sales
volume and average selling prices for
edible oil and fat products. Branded
consumer products contributed over half
of this revenue, while sales to industrial
customers and third
-
party brands
accounted for the balance. Profitability
of this Division has fallen due to the
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