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Cocoa Exporter Davomas Sees 2011 Revenue Slump
Indah Handayani | January 27, 2012

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Revenue at Davomas Abadi, an Indonesian exporter of cocoa butter and cocoa powder, fell by almost 19 percent last year on slowing demand from Europe and the United States, its main overseas markets, a company official said on Friday.

Revenue at the Jakarta-based company fell to Rp 1.3 trillion ($146 million) from Rp 1.6 trillion in 2010 as the euro debt crisis and a slowing US economy crimped demand, said Hasiem Wily, head of investor relations.

Wily said the company struggled with sluggish global demand last year, and its production utilization was only about 40 percent, with total production of 140,000 tons.

“We are still struggling this year and that is forcing us to shift to Asian markets,’’ Wily said.

He declined to provide profit figures.

Wily said the company was working on plans to diversify its exports markets, including to Japan, China and South Korea.

“We did a test on China’s market in December last year,’’ he said. He did not provide details.

The company has booked losses every year from 2008-10. It posted a net loss of Rp 510.65 billion in 2008, narrowing to Rp 226.76 billion in 2009 and Rp 26.49 billion in 2010. It is scheduled to report last year’s figures next month.

Shares of Davomas closed unchanged at Rp 50 on Friday on the Indonesia Stock Exchange.

A separate report from the national cocoa producers group on Friday showed that Indonesia’s cocoa shipments were forecast to rise to 250,000 tons this year from 200,000 tons in 2011, while production is forecast to climb to 550,000 tons from 450,000 tons.

Dakhri Sanusi, secretary general of the Indonesian Cocoa Association, said Europe’s debt crisis and the global economic slowdown would not significantly affect the country’s production and export markets.

Indonesia is the third-biggest producer of cocoa in the world, after Ivory Coast and Ghana. The country suffered a bad harvest in 2011 due to bad weather and the outbreak of a fungal disease.

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