ICBP - Sustains growth with price hike and strong exports

ICBP - Sustains growth with price hike and strong exports Indofood CBP Sukses Makmur (ICBP) raised instant noodle prices by 3-4% in February 2025 to maintain margins amid rising CPO costs, while benefiting from a possible higher demand during Ramadan. Despite the price hike, its strong market position, with over 70% share, minimizes the impact on sales volume. The company is also expected to gain from declining CPO prices, which could improve its gross margin to 36.4% in Q1-2025. Additionally, export sales, driven by its overseas subsidiary, continue to outpace domestic growth, contributing more to overall profits. With consistent revenue and earnings growth, ICBP remains well-positioned for long-term expansion, supported by strong consumer demand and operational efficiency. Note that, ICBP’ revenue and net profit grew, 8.15% yoy to IDR55.5 tn and 15.57% yoy to IDR9.4 tn, respectively in 9M24. (Source : Investor Daily)