INDF posted significant profit growth in FY19 compared to FY18’s growth; that was attributable to its positive performance—particularly CBP and Bogasari’s best performance as well as improving margins of the agribusiness and distribution segments. We project that FY20’s revenue and earnings are likely to weaken as the large-social restrictions (PSBB) and uncertain Idul Fitri holiday bonuses (THR) payout are two hiccups in solid domestic consumption. Despite the hiccups, INDF’s outlook is pretty sound as it is one of the defensive players and the market leader in food-branded products.
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