ICBP - 1H24 net profit drops 38% yoy

ICBP - 1H24 net profit drops 38% yoy Indofood CBP Sukses Makmur (ICBP) managed to record revenue growth in the first semester of 2024. However, the Indomie producer's net profit had to be eroded due to increasing financial burdens. ICBP posted net sales of IDR36.96 tn as of June 2024 or 7.20% yoy. Instant noodle sales contributed IDR27.29 tn. Then the dairy and snacks segment each contributed revenue of IDR5.03 tn and IDR2.26 tn. Sales from the food flavoring segment in semester I-2024 reached IDR2.27 tn. Then there is the nutrition and special food segment which contributed to sales of IDR647.82 bn. Lastly, the beverage segment's revenue reached IDR843.59 bn. (Source : Kontan) Comment : Worth to note that core profit growth remains strong at 20% yoy. On profitability, margin expansion continues from GPM to EBITDA margin benefited from low-cost input and sales volume. We expect 2H24 sales to continue supported by stable volume. On GP level, cost input likely to remain low and thus will benefit margin. Better ASP and stable opex should be translated as another growth catalyst.