Indofood Agri reported Thursday it swung to a third quarter net loss of 126 billion rupiah from a year-ago net profit of 8 billion rupiah as crude palm oil (CPO) prices fell 7 percent and palm kernal prices dropped 32 percent.
Revenue for the quarter ended 30 September came in at 3.59 trillion rupiah, down 3 percent on-year, the palm-oil player said in a filing to SGX.
In Singapore dollar terms, Indofood Agri reported a net loss of S$12 million, swinging from a year-ago net profit of S$1 million, on revenue of S$346 million, compared with S$357 million in the year-ago period.
For the nine-month period, Indofood Agri reported a net loss of 400 billion rupiah, wider than the 10 billion rupiah loss in the year-ago period, on revenue of 10.1 trillion rupiah, down 2 percent on-year.
In Singapore dollar terms, the nine-month net loss was S$39 million, wider than S$1 million loss in the year-ago period, on revenue of S$972 million, down from S$988 million in the year-ago period, the filing said.
In its outlook, Indofood Agri pointed to continued U.S.-China trade tensions.
“These uncertain global developments have negatively impacted the prices of agricultural commodities,” the company said.
Rotterdam CIF CPO prices decreased 11 percent on-year to an average of US$535 a tonne, it noted.
“CPO prices will remain volatile with demand projected from key import markets like China and India, together with the relative price of palm oil to crude oil which affects discretionary biodiesel demand,” Indofood Agri said. “Against this backdrop of a volatile commodity price environment, we prioritise our capital expenditure investment in growth area and focus on cost control measures and other innovations to increase productivity.”