Bisnis, JAKARTA — The volatility of global commodity prices amid climate challenges and geopolitical conflicts has impacted Salim Group’s PT Indofood Sukses Makmur Tbk sentiments. (INDF), albeit the company’s financials continue to perform well.
INDF has several business portfolios highly sensitive to fluctuations in global commodity prices, especially in food commodities, such as wheat commodities through PT Bogasari and palm oil plantation and processing through Indofood Agri Resources Ltd (IndoAgri). Recently, the prices of both food commodities have been volatile in the global market.
Lisa Lee, senior ASEAN equities analyst at Bloomberg Intelligence, said price volatility and changing weather patterns can affect the sales and profits of both business units in the second half of 2023 to 2024.
“[The impact] will include IndoAgri’s plantations with plants at its mature production age and mainstay brands in the wheat flour and pasta businesses,” said Lisa in her research, quoted on Monday (11/13/2023).
