The food and beverage (F&B) sector growth is rising rapidly in the first term of this year. The fastest revenue growth occurs in Akasha Wira International Tbk (ADES) and Tri Banyan Tirta Tbk (ALTO), due to the bottled water sales growth.
The average of F&B sector revenue growth is 15.9%, while the average of net profit growth is 10.3%. Besides the high growth on bottled water companies, the high growth also happens on food product companies like Mayora Indah Tbk (MYOR).
The highest revenue growth is achieved by ADES which is by 39.4%. This happened because of the increase in bottled water sales which reached 77.7%. Their net profit growth is also the highest at 20.5% driven by their increasing sales. The same happened to ALTO as they were able to improve their net profit from their recorded net loss in the previous year.
High growth often invites new competitors. The beverage issuers should be more careful of the new competitors such as Charoen Pokhand Indonesia Tbk (CPIN).
Meanwhile, MYOR’s growth occurred in both food and coffee products and each of them grew by 36.8% and 10.8%. However, MYOR’s profit slightly fell by the loss deviation of foreign money exchange that reached 142.5 billion IDR, while in 2015, the profit reached 111.8 billion.
Some issuers have not issued their financial statements because they are still conducting internal and audit reviews. One that needs to be observed is Indofood Sukses Makmur Tbk (INDF) which has claimed that it would strengthen upstream and downstream integration. This integration can improve INDF’s ability to penetrate other issuers’ markets.
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