ICBP – Expects revenue to grow moderate this year

ICBP – Expects revenue to grow moderate this year Indofood CBP Sukses Makmur (ICBP) still expects a good industry prospect this year, on the back of its product diversification and higher sales volume growth on better purchasing power with a much controlled inflation after Eid al-Fitr. The successful launch of several new products in 2023 also strengthens those prospects. Thus, ICBP targets single-digit revenue growth this year. Moreover, early this year, ICBP has shared a guidance from its management, that its EBIT could increase by 19-21% yoy in 2024. ICBP has also allocated around IDR3.5 tn for 2024' capex for increasing its production capacity. The 2024' capex allocation followed its conservative capex allocation for the past 2 years, which prioritizes its core segments, such as; noodle, milk and snack products. Thus, ICBP expects its sales to grow in 1Q24, mainly due to better purchasing power from low- to middle-income segment with the disbursement of social assistance/bonus on Eid al-Fitr festivities. For this year, ICBP expects for a lower raw material prices yoy, such as wheat and sugar, which could help to expand its margins. (Source : Kontan)