Indofood Sukses’ FY15 core-earnings delined 8% YoY, in line

¨ Indofood Sukses’ ($INDF) FY15 core-earning came lower at IDR3.6trn (-8% YoY), in line with our expectation, achieved at 96% of our and consensus full-year estimates.

¨ Lower FY15 earnings were driven by higher financing costs which impacted by weakened IDR currency. Around 41% of Indofood Sukses’ debts denominated in foreign currencies.

¨ QoQ basis, 4Q15 core-earnings jumped to IDR856bn (+37% QoQ) on the back of lower financing costs which benefited from strengthened IDR currency in the last quarter of the year.

¨ In addition, flour’s EBIT increased 188% QoQ on the back of higher sales volume (+15% QoQ), as well as higher ASP (+2.8% QoQ).

¨ Agribusiness’ EBIT also recovered, increasing 22% QoQ thanks to higher CPO price.