ICBP – Net profit grew solid in 1Q23

Indofood CBP Sukses Makmur (ICBP) recorded strong 1Q23 result, whereas sales growth by 11.4% yoy with income from operations also came in double digit growth at 12.9%. Income for the period grew even stronger by 91.8%yoy, while bottom line reported 103.72% yoy higher as finance income sky rocketing on the back of gains on foreign exchange. ICBP will continue to boost volume sales across its product portfolio, while at the same time continue eyeing on the latest update from commodity prices and foreign exchange currency. (Source : Bisnis Indonesia). Comment : We view ICBP’s solid 1Q23 results likely to stay on track. Noodles for sure continue as the backbone, whilst dairy and snack foods contribution seem continue to be significant. We also expect lower cost input trend could turn into realty until the end of 2023 which will make substantial differences to ICBP’s margin expansion.