GarudaFood plans to boost sales by 30%, but delays IPO

Ika Krismantari, The Jakarta Post, Jakarta | Wed, 02/25/2009 1:52 PM  

Food producer, PT GarudaFood, is seeking to increase its sales by 20 percent this year as demand for food and beverages is expected to remain robust despite the global financial crisis. 

Managing director Hartono Atmadja said Tuesday that he was upbeat about the company' prospects, saying sales are targeted to hit Rp 3.65 trillion (US$306.6 million), from Rp 3.04 trillion last year. 

"The growth will be supported by *the sales from* biscuits and beverage products," Hartono said. 

Sharing his optimism, the company forecasts that the country's food industry will grow by up to 15 percent this year, as the demand for food will never stop. 

"We have not even incorporated the *additional* revenue the industry would get from the decline in imported products," Hartono said. 

The government has introduced limitations on the imports of unnecessary products earlier this year by cutting down the number of seaports and airports eligible as the entry point for certain products, with the aim of controlling smuggling products as well as the protecting of domestic markets. 

Under the policy, five categories of goods, namely garments, footwear, toys, electronics, food and beverages can only enter the country through five designated ports and some international airports. 

The Indonesian Food and Beverage Association (Gapmmi) has said that local industry would benefit from the import limitation policy and this could boost local sales by up to 15 percent. 

On the company's plan to go public, Hartono said the company has decided to delay the plan until the first semester of 2010, to wait for a better market environment. 

Garuda had planned to offer a 15 per cent stake to the public in the third semester of last year through an initial public offering (IPO). 

Garuda financial director Samuel Triswandi said the company would still expect to secure Rp 1 trillion from the IPO. 

Last year, Garuda booked a 23 percent rise in revenue up to Rp 3.04 trillion, whilst pushing up its net profits by 74 percent. 

The company however, refused to mention the value of its net profits. 

Data from the Central Statistic Agency (BPS) show that as of the third quarter in 2008, the food industry grew by 10.4 percent from the same period a year earlier. 

Garuda is a subsidiary of Tudung Group, a holding owned by businessman Sudhamek AWS. 

Tudung Group was established three years ago after Sudhamek decided to expand its business to other business sectors, including palm oil.

Related Article:

UNILEVER INDONESIA OPTIMISTIC ITS SALES WILL HOLD UP