Petra Foods' 2Q15 results were largely similar to 1Q. 2Q15 revenue was down 12.7% YoY to US$115.1m and formed 24% of our FY15 forecast. Sales this quarter was about 8% higher QoQ due to the run-up to the Muslim Lebaran festivities. PATMI was 40% lower at US$7.4m, and constituted about 15-16% of our and the street’s FY15 projections.

In constant currency terms, both revenue and PATMI also saw a YoY decline of 3% and 29.2% respectively. The underlying performance has continued to weaken, mainly attributable to the poor economic environment in its core market Indonesia, which resulted in a slowdown in consumption.

An interim DPS of 1.28 US-cents and special DPS of 0.81 US-cents have been declared. Pending more information from an analyst briefing later, we keep our SELL rating while our fair value estimate of S$3.61 is under review.

Source: OCBC Research - 14 Aug 2015