
Corporate Profile
P.T. Davomas Abadi Tbk (Davomas or the Company) is Indonesia’s largest producer and exporter of cocoa butter and cocoa powder (collectively referred to as cocoa products).
Cocoa butter is a key ingredient in chocolate and is also used in pharmaceutical products and cosmetics.
Cocoa powder is used to provide chocolate flavor and coloring to chocolate-related food products.
The Company exports all of its cocoa products under the trade name P.T. Davomas Abadi to international cocoa traders.
The Company was established in 1990. Its production facility is located in Tangerang, West Java. The Company currently has a production capacity of 100,800 metric tons per annum (tpa); a further 40,320 tpa of capacity will come on-stream before mid year of 2007.
Davomas is listed on the Jakarta Stock Exchange since 1994.
In 2006, the Company had net sales of IDR 1,656.6 billion (USD 183.7 million), compared to IDR 1.120.9 billion (USD 114.0 million) in 2005, an increase of 47.8%. In 2006, the Company’s EBITDA amounted to IDR 447.6 billion (USD 49.6 million), compared to IDR 319.3 billion (USD 32.5 million) in 2005, an increase of 40.2%.
Process Know-How
Senior management has cocoa experience.
Successfully brought 100KT of capacity on line
Substantial in-house knowledge of recipes and cocoa processing
Intimate relationship with customers – sharing of production methods
Experience personnel
Cocoa Industry
Sulawesi is the main bean producing region in Indonesia
Indonesia expanded its cocoa production substantially from the early 1980s following the government’s transmigration program; Sulawesi, Kalimantan and Sumatra joined Java as major cocoa production centres
The cocoa production expansion program was encouraged by a free economy, cheap government grants extended to farmers to buy land, low production costs and planting technology, etc
Indonesian cocoa beans are primarily grown on smallholder farms, accounting for approximately 86% of total cocoa bean production
Current land area used in the cultivation of cocoa is estimated at 700,000 hectares with 350,000 growers involved versus 135,000 hectares used for cocoa cultivation in 1988
Overview of Chocolate Confectionery Market
Global sales of chocolate confectionery have risen from USD 52 billion in 1999 to USD 64 billion in 2004
The International Cocoa Organization (ICCO) estimates that approximately two-thirds of global cocoa bean production is used to make chocolatesGlobal sales of chocolate confectionery have been on an up-trend since 2001
In 2004, global sales of chocolate confectionery accounted for 54% of all confectionery related sales that year (comprising chocolate, sugar and gum confectionery products)
Global sales of confectionery are expected to increase by a CAGR of 2.3% during the period 2004-2009 led by growth in emerging economies such as Eastern Europe, Africa, Asia Pacific and Australasia
Cocoa Powder Usage
Principally employed in food processing and confections
Provides “chocolate” Flavor
Used for Cosmetics Products
Generally low (10-12%) fat content
Applications vary widely, depending on specifications
Products: cocoa bean, butter, cake, powder and Cocoa Liquor
Characteristics: Major ingredients for Chocolate, Flavor, Confectionery, Cosmetics and
Pharmaceuticals.
Major Suppliers: Africa & Asia, farmers & traders
Major Customers: Europe and America
Market & Pricing: London Terminal Market and New York Coffee, Sugar and Cocoa Exchange
Associations: ICCO (International Cocoa Organization) and Askindo
Learn more please visit : http://www.davomas.com