INDF - Boosted by noodle and exchange rates

INDF - Boosted by noodle and exchange rates Indofood Sukses Makmur (INDF) is poised for continued growth in 2H23, with increased demand from the product segment of Indofood CBP Sukses Makmur (ICBP) expected to contribute to INDF's profit growth. In 1H23, INDF's net profit surged by 92% yoy to IDR5.57 tn, driven by a 4.5% stronger Rupiah against the US Dollar, which reduced interest expenses. INDF holds 74% of its debt in foreign currencies and has 23% of sales exposed to foreign exchange, resulting in lower interest costs as the US Dollar weakens. CBP segment revenue for 1H23 grew by 6.56% yoy to IDR34.3 tn. Instant noodle sales saw a 7.0% yoy increase due to higher average selling prices, both domestically and internationally, along with stable sales volume. Looking ahead, the agribusiness segment shows promise, supported by increased palm oil demand due to B35 implementation and Deepavali celebrations in 4Q23. (Source: Kontan)