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INDOFOOD AGRI RESOURCES LTD
ANNUAL REPORT 2014
narrowing of domestic palm olein and CPO prices arising from
increased refining capacity in Indonesia. We will continue to
differentiate the market with new product offerings and further
develop the distribution network for deeper market penetration.
Sales volumes for our cooking oil, margarine and CNO fell
4% year
-
on
-
year due to lower coconut oil and bulk oil sales.
Nonetheless, the market leadership of our branded consumer
products continues to underpin positive volume growth. As a
consequence of higher raw material costs, primarily CPO,
the Division reported lower EBITDA earnings in 2014.
In terms of sales contribution, the Division accounted for
66% and 65% of the Group’s external sales in 2014 and 2013
respectively. The revenue derived from Indonesia was 87%,
while the balance came from exports to 29 countries, including
Singapore, China, Nigeria, Malaysia, the Philippines and
East Timor.
In mid
-
2014, PT SIMP launched its new product,
Royal Palmia Butter Margarine, the fist combined butter and
vegetable margarine in Indonesia. The products are available
in two different sizes: 200
-
gram sachets and 250
-
gram cups.
The products are distributed nationwide through the general
and modern trade channels.
2015 OUTLOOK
We expect to further utilise our downstream production in 2015
by enhancing the Division’s specialty fat output and production
capability to meet rising demand.
To capture stronger margins in a highly commoditised market,
the Division is looking at strategic opportunities to develop
higher value palm oil products.
The Division will also continue to use focused advertising and
promotional activities to raise awareness and enhance its brand
image. Such activities will reinforce our market penetration,
product distribution and aftersales service nationwide.
