ICBP - FY23 net profit grew by 52% yoy to IDR6.99 tn

ICBP - FY23 net profit grew by 52% yoy to IDR6.99 tn Indofood CBP Sukses Makmur (ICBP) recorded net financial performance growth in 2023. Even though ICBP's revenue grew by single digits, ICBP's net profit was able to jump by double digits. According to a report released on Monday (25/3), total revenue of the Indomie producer is IDR67.91 tn in FY23. This is an increase of 4.80% yoy vs IDR64.79 tn. In detail, instant noodle sales contributed IDR50.43 tn (6.2% yoy), milk or dairy sales reached IDR9.12 tn and income from snacks reached IDR4.24 tn (7.0% yoy). Moreover, revenue from the food flavoring segment contributed IDR3.67 tn (9.12% yoy), from nutrition and special foods contributed IDR1.21 tn and from the beverage segment contributed IDR1.6 tn in the same period. In all, net profit for the year attributable to owners of the parent entity ICBP reached IDR6.99 tn or 52.39% yoy. (Source : Kontan) Comment : We like ICBP’s net profit growth of 52.4% yoy. Yet, it arrives below ours and street FY23 forecast. We will revisit our ICBP model and make some adjustment on our ‘24F assumptions to accommodate lower than expected FY23 PATMI numbers. Despite our plan to cut ‘24F EPS growth, we think ICBP remain deserves a BUY call. Our blended valuation for ICBP stocks at IDR13,140 is equal to around 15.2x ‘24F P/E multiples, while it is currently trading at 13.0x ‘24F P/E, or slightly above its -2SD of 12.8x ‘24F P/E.