Maker of Indomie Posts Net Profit Gain during Coronavirus Pandemic

JAKARTA, KOMPAS.com – Indomie producer Indofood recorded a net profit gain of 4 percent during the first quarter of 2020.

The Indonesian conglomerate managed to earn Rp 1.40 trillion, up from Rp 1.35 trillion in the same period last year.

PT Indofood Sukses Makmur Tbk’s net profit gain was supported by an uptick in consolidated net sales of 1 percent or equivalent to Rp 19.30 trillion.

Read also: Sale of Indonesian Foods Overseas Weather Corona Outbreak

The Indomie producer's consolidated net sales year on year totaled Rp 19.17 trillion.

Indofood’s President Director and Chief Executive Officer Anthoni Salim owed the growth in net profit to the company’s hard work to increase competitiveness amid the coronavirus pandemic.

“Amid today’s challenging global conditions, Indofood successfully maintained strong performance during the first quarter of 2020. In the future, we will remain cautious and continue improving our competitiveness,” said Anthoni on May 22.

Profit gain for sister company

Profit for Indomie producer’s sister company PT Indofood CBP Sukses Makmur Tbk soared 48 percent year on year to Rp 1.98 trillion.

It also booked a 15-percent increase in its core profit totaling Rp 1.57 year on year from a previous Rp 1.37 trillion.

The growth was the result of the company’s soaring sales performance that increased by 7 percent or Rp 12.01 trillion.

During the same period last year, the company’s sales performance reached Rp 11.26 trillion.

Indofood and Indofood CBP are producers of a wide range of food products including Indomie. The company also produces a variety of snacks and drinks.

“We will continuously monitor and adjust ourselves to the current changes while carefully managing our business and remaining competitive in the market,” said Anthoni Salim.

Weak business climate

The instant noodle producer has been left unscathed from the brutal economic impact of the coronavirus pandemic.

While the Indomie manufacturer booked a net profit gain, companies in other sectors have been less fortunate.

Indonesian ride-hailing giant Gojek announced layoffs and the shutdown of its GoLife wing on June 24.

Read also: Gojek Cuts 430 Jobs As Indonesian Economy Slows Down Due to Covid-19

The move came despite receiving an investment of more than $3 billion and a valuation of $10 billion by investors Facebook, PayPal, Tencent, and Google.

Similarly, Singapore’s Grab also announced layoffs in June affecting its Indonesian branch.

Read also: Grab Reduces 5 Percent of Workforce Due to Coronavirus Pandemic

Indonesia’s GDP grew 2.97 percent year on year during the first quarter of 2020 as reported by Statistics Indonesia.

The growth is weaker than the central government and Bank Indonesia’s projections of 4 percent GDP growth.

The Indonesian economy is expected to rebound during the third quarter although the OECD warned that the national economy could contract by 2.8 to 3.9 percent if Indonesia faces a second wave of coronavirus infections. 

(Writer: Kiki Safitri | Editor: Bambang P. Jatmiko) 

Source: https://money.kompas.com/read/2020/05/22/160801926/produsen-indomie-bukukan-laba-bersih-rp-14-triliun-di-kuartal-i-2020