Petra Foods still not out of the woods after disastrous Q1
One of the worst since the Asian Financial Crisis.
Petra Foods is still in the woods after posting extremely disappointing results in the first quarter.
CIMB analysts Kenneth Ng and Jonathan Seow noted that Q1 saw Petra's first year-on-year sales decline in its core Indonesian market since the Asian Financial crisis.
This alarming result points to an accelerating consumer slowdown in Indonesia, they stated.
"Unlike 2014, weak reported 1Q sales were no longer just about translation effects. Petra's Indo sales in 1Q15 was -12% in Rp terms. Management cited part of the reason as wholesalers and retailers destocking as consumer buying slowed. That said, one cannot override weak macro trends as commodity prices stay soft, promised infrastructure spending projects are slow to come and rising inflation curbs incomes and raises cost of living," they noted.