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TRGU remains prospective amid rising wheat prices

21 September 2022 09:37

JAKARTA – PT Cerestar Indonesia Tbk (“TRGU”), a producer of wheat flour that is part of the Cerestar Group, remains optimistic that target of 2022’s net profit will be achieved above 100%, amid the rising trend of wheat flour prices related to the protracted Russia-Ukraine war. The Company is optimistic that the increase in wheat prices in the global market will not affect its performance this year, because the demand for wheat flour in Indonesia continues to increase every year. According to data from the Central Statistics Agency (BPS), Indonesia's wheat imports in 2021 were at 11.43 million tons, an increase of 8.85% from 2020. As for this year, until the end of June, wheat imports have reached 5.5 million tons.

As for the increase in the price of wheat flour, the Company has made gradual adjustments so that customers have the opportunity to adjust the selling price of their products. “So even though we have stock purchased at the previous price, we are not optimizing the profit from the price increase. We choose to make adjustments gradually, so that customers can make adjustments as well," said President Director of Cerestar Indonesia, Indra Irawan.

In the 1st Semester of this year, sales of TRGU wheat flour reached 242,000 MT, an increase from the same period last year which was at 226,000 MT. In 1 st Semester 2022, TRGU posted a net profit of IDR 19.69 billion, or 99% of the 2022 net profit target of IDR 20 billion. (LM)

 

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