JAKARTA - PT Indofood Sukses Makmur Tbk (INDF) keeps the plan to buyback shares of Indofood Agri Resources Ltd (IFAR) in Singapore Stock Exchange (SDX), even though IFAR's net income and revenues declined.
In the financial statements of the first half of this year, IFAR posted a loss of Rp 274.33 billion. In the same semester last year, IFAR's loss was only Rp. 18.8 billion. IFAR's revenue performance in this period also dropped by 0.8% YoY, from Rp 6.56 trillion to Rp 6.5 trillion.
"The weakening of agricultural commodity prices gave a negative impact on the business activities of oil palm and sugar plantations carried out by the company," explained IFAR management.
Since the end of 2018, IFAR has actually started to suffer losses. The company's net profit was recorded at minus Rp 222 billion. Meanwhile, the sales performance also decreased by 10.59% from Rp 15.73 trillion in 2017, to Rp 14.06 trillion in 2018. (KR/W)