ICBP - 9M23 net profit doubled

ICBP - 9M23 net profit doubled Indofood CBP Sukses Makmur (ICBP) recorded an increase in sales throughout the third quarter of 2023. During this period, the company's sales reached IDR 51.3 tn or an increase of 5% yoy. In line with the sales achievement, the company's cost of goods sold fell 0.67% yoy to IDR 32.7 tn. As a result, ICBP posted a gross profit of IDR 18.6 trillion during the 9M23 period, or an increase of 16% yoy. After deducting various expenses, the net profit that ICBP can attribute to the parent entity reached IDR 7.06 tn (113% yoy) (Source: Bisnis Indonesia). Comment: We like ICBP 9M23 results, which make margin expansion getting stronger. Going forward we believe ICBP will continue to enjoy higher margin on the back of soft commodity price movement. We also expect volume likely to record better, especially in the upcoming election. Despite competition getting stiffer, we believe product innovation should continue to intact and thus would make ICBP to remain stand out among the crowd.