REPUBLIKA.CO.ID, JAKARTA - Publicly traded food giant PT Indofood CBP Sukses Makmur Tbk (ICBP) reported 6.6 percent increase year-on-year in net profit to 1.34 trillion IDR in the first half of the year. In the first six months of last year, the largest instant noodle producer in Southeast Asia recorded a profit of 1.26 trillion IDR.

"Amid the general decline in market demand and rising production cost, we have managed to maintain good performance," the company said in a news release on Tuesday.

The statement said the company would invest to expand market, improve distribution system and expand business portfolio. The company management attributed the increase in profit to 23.4 percent rise in sales to 12.58 trillion IDR year-on-year.

It said the instant noodle division had continued to be the largest contributor to the company's total consolidated net sales. The instant noodle division accounted for 65 percent of the net sales, followed by dairy division accounting for 10 percent and snack for 7 percent, drinks for 5 percent and food flavor and nutrition for 3 percent, and special food for 2 percent.

In the same period , the company recorded a 20.1 percent increase in gross profit to 3.97 trillion IDR from 3.3 trillion IDR, despite a slight decline in its gross profit margin to 25.6 percent from 26.3 percent as a result of an increase in the price of a number of main basic materials.

Meanwhile its operating profit rose 3.8 percent to 1.70 trillion IDR from 1.64 trillion IDR despite a decline in operating profit margin to 11 percent from 13 percent as a result of shrinking gross profit margin and an increase in selling costs mainly distribution cost, transport cost, promotional and advertisement costs, salaries and allowances.

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