Indofood Experience Double-Digit Growth Amid COVID-19 Challenges
Friday, August 7th, 2020 | 420 Views
According to Jakartapost, food manufacturing giant PT Indofood Sukses Makmur and its subsidiary, processed food company PT Indofood CBP Sukses Makmur (ICBP), have managed to book a 11.7 percent year-on-year (yoy) profit growth to Rp 2.8 trillion (US$195 million) in the first half of the year. This increase in profit is owing to the increase in sales (two percent to Rp 39.4 trillion) and drop in production cost (1.2 percent to Rp 26.9 trillion).
This positive performance in spite of challenges during the COVID-19 is supported by its recovering agribusiness segment in the second quarter and its consumer branded products.
Easing of lockdown measures in the second quarter has driven crude palm oil prices and the company’s agribusiness sales has risen seven percent yoy to Rp 6.88 trillion in the first six months of 2020.
With stay-home orders and stockpiling of staple food products, the demand for instant noodles has also sky-rocketed due to its affordability and convenience. Hence, the company saw a 6.31 percent yoy increase in its biggest contributer—the sales of instant noodles—its biggest contributer, to Rp 15.49 trillion, including its famous consumer brand, Indomie.
“We expect this challenging situation to continue until the second half of the year, so we will continue to maintain supplies and product quality for our clients,” said Indofood president director and chief executive officer Anthoni Salim in a statement.
“We will also improve our ability to adapt swiftly to the ever-changing market dynamics,” he continued.
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