Net income at food producer Tiga Pilar Sejahtera Food tripled in the first half from a year earlier as revenue surged and the company benefited from favorable foreign exchange.
Shares in Tiga Pilar surged after the company announced in a statement on Friday that its net income hit Rp 110.24 billion ($12 million) in the January-June period, while revenue jumped 72 percent to Rp 1.29 trillion.
Tiga Pilar sells instant noodles, rice, biscuits and snacks, targeting its products at middle- and lower-income consumers.
“On our evaluation, the company’s net margin rose because of the foreign exchange gain and other income that increased significantly,” Ivan Chamdani, an analyst with Trimegah Securities, said in a note to clients on Friday.
Net margin at Tiga Pilar stood at 8.6 percent, compared to 3.7 percentage points a year earlier, Chamdani reported.
The company reported a foreign exchange gain of Rp 12 billion in the first six-month this year compared to a foreign exchange loss of Rp 419.05 billion last year.
Tiga Pilar recorded Rp 4.41 billion in other income, compared to a Rp 5.53 billion loss a year earlier.
Chamdani said that net margin performance in the first half was supported by non-operational revenues.
Last year, the company acquired Taro, a snack brand, from Unilever Indonesia for about Rp 200 billion. The acquisition was intended to help the company improve sales among middle-income consumers.
Meanwhile, the company announced it had secured a permit to open 5,000 hectares of land to expand its rice plantation in West Kalimantan. Kalimantan, the country’s largest island, is rich in natural resources such as oil, gas and coal.
Shares in Tiga Pilar rose 5.8 percent to Rp 730 in Jakarta trading on Friday. They have gained 47 percent so far this year.