That’s an increase of 14.4% year on year.
It’s all about scale. The company, based in Medan, has about 50% market share in the provinces of North Sumatra and Aceh. And its production capacity is about 1.1 billion packets a year.
It said it sold S$42.3 million worth of noodles in 1H, up by 19%, with its products found in supermarkets such as Makro, Carrefour and Hypermart, mini-marts, wet markets, and grocery stores.
Gross profit margin and net margin were a very tasty 28.3% and 17.5%, respectively.
Such business fundamentals may be why Consciencefood’s IPO this month attracted the support of the likes of Rosa Taniasuri Ong, wife of Wilmar co-founder, took 19.5 million placement shares at 22 cents. The stock traded as high as 35 cents since its IPO.
As Daniel Iskandar Zulkarnain, operations manager, at a briefing for analysts last week: “We are the only company in the world that produces instant noodles with high fibre and with no MSG.”
Growth plans
* Consciencefood will introduce high-fibre instant noodles in cup packaging by the end of this year. It is using S$1 million from its IPO proceeds to buy machinery for this.
* While 97% of its sales are currently from the Indonesian market, Consciencefood intends to grow its overseas sales.
Its instant noodles, branded Alhami, will soon appear in NTUC Fairprice supermarkets in Singapore. This is not a major overseas market unlike the Group’s big targets of China and India.
Consciencefood will target China’s high population of Moslems while it will target the vegetarians in India, said Daniel.
* The Group will set up a manufacturing plant in Jakarta to sell to Java, which has a population of 150 million people living largely in the cities.
It is using S$8 million from its IPO proceeds for this.
* The Group will launch organic isotonic coconut drink and organic canned coconut milk to serve health-conscious consumers.
It is using S$1 million from its IPO proceeds to buy machinery for this new busines.
Said Daniel: “Sumatra has abundant coconut trees growing in jungles – no need for fertilizers. It’s really pure, organic.”
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