INDF - 9M22 net profit declined 14.07% yoy

Indofood Sukses Makmur (INDF), booked sales growth at 11.01% yoy, yet net income slip 14.07% yoy to IDR4.64 tn on the back of loss on foreign exchange amounting IDR3.14 tn. Excluding the recurring items and loss on forex, INDF’s core profit increased by 16%y oy to IDR6.49 tn. (Source : Kontan). Comment: Lower net income which not caused by pressures from organic business growth seems reasonable, especially when it triggered by trend on weakening rupiah. However, we expect the company to mitigate the risk by restructuring its debt portfolio to use rupiah denomination rather than foreign currency. We still like INDF as consumer ods stock proven to be more resilient in the uncertainty environment