OP E RAT I NG &
D
uring 2015, the Group achieved revenue of US$405.9
million and PATMI of US$15.3 million. This excluded
the Exceptional Item of US$20.0 million from the
settlement of dispute with Barry Callebaut. As a result of
this one-time Exceptional Item, the Group reported a loss
after tax and minority interests of US$4.7 million for 2015.
From an operating perspective, it was a challenging year for
the Group as we encountered several factors that contributed
to the lacklustre full-year results. These factors include the
slowdown of the Indonesian economy, continued weakening
of the Rupiah, increased advertising and promotion costs,
decline in our Gross Profit margin during the year (despite a
marked improvement in 4Q 2015), closure of the Singapore
distribution business, and increase in effective tax rate.
The macroeconomic headwinds in Indonesia and the
continued weakening of the Indonesian Rupiah dragged
economic growth and led to lower consumer confidence,
which significantly weakened consumption across a number
of consumer categories including chocolate confectionery.
The level of consumer confidence is critical to the Fast
Moving Consumer Goods market and our trade customers,
in response to the weakening consumption in 2015, reacted
to reduce their orders and inventory levels which in turn
negatively affected our sales.
Currency pressure from the Rupiah, which weakened by an
average of 12.5% against the US Dollar (“USD”), negatively
affected our Gross Margin because many of our input costs
were priced in USD. For 2015, the Rupiah weakened by 12.5%
against the USD, and at 31 December 2015 had weakened
to a level of IDR 13,795 against the USD. The weakness in
the Rupiah was the most pronounced during the 3Q of 2015
when it weakened at end September to IDR14,657 against
the USD. This was the lowest level in 17 years. The other
Regional currencies also experienced weaknesses versus
BEN RYAN
Chief Financial Officer
To encourage consumption of our
products and to further develop
our strategic brands, higher trade
promotion expense was incurred
in the 2nd Half of 2015.
42
PETRA FOODS LIMITED
ANNUAL REPORT 2015
