Bisnis Indonesia, 06 August 2011
JAKARTA: PT Sierad Produce Tbk (SIPD), is eyeing a target sales of around Rp 2.5 trillion in the second semester of 2011, after the company achieved sales value of Rp 2 trillion in the first half of this year.
Sierad Produce’s corporate secretary, Elies Lestari Setiawan said that the company did not change the company's sales target and net income, although the performance in the first half of this year was pretty good.
If the company managed to reap sales of Rp 2. 5 trillion in the second semester of 2011, the Company's total net sales this year would be Rp 4. 5 trillion. Values are up by 25% over the previous year’s earning totaling Rp 3. 5 trillion.
On the other hand, earnings before interest, taxes, depreciation and amortization (EBITDA) is targeted to reach Rp 250 billion this year, up by 32% from last year’s position, namely Rp 190 billion.
"Although our earnings go up, the target does not change. We are trying to pursue further sales target, " she said yesterday.
In the first half of 2011, the company posted a net profit of Rp 21.45 billion, up by 41.6% from Rp 15.14 billion in the same period last year.
The company's net profit target is set at Rp 80 billion this year, up by 31% of last year’s profits, namely Rp 61 billion.
She pointed out that the profit increase was driven by net sales growth of 17.7% to Rp 2 trillion than before, that is Rp 1.70 trillion. In addition, the Company enjoyed benefits from rising animal feed prices.
"Our performance is driven by the growth in sales volume coupled with sales prices of the rising animal feed prices," she continued.
Achmad Kurniawan Sujatmiko , an analyst of PT. Pemeringkat Efek Indonesia, pointed out that such animal feed issuer’s performance was in accordance with market expectations. According to him, the profit growth was in line with the increase in sales during the first half of this year.
One of the triggers in the rise of sales, was the increased price of industrial raw materials, that is, the price of corn. "Sierad is one of the fodder issuer which has an efficiency in its performance. The increase in its profits was supported by the by rising prices of corn, " he further said.
He considered this issuer under stock code of SIPD would be able to get the production materials at a cheaper price compared to some competititors, among others, PT. Malindo Feedmil Tbk and PT Japfa Comfeed Indonesia Tbk.
"The biggest company among this industry is PT. Charoen Phokpand Indonesia Tbk, but still it can be categorized as an issuer with pretty good efficiency. In the future, its performance will still be driven by high demand in the second half of this year, "he concluded.