Mayora, Beng-Beng And Kopiko Producer Owned By The Conglomerate Jogi Hendra Atmadja Raised Sales Of IDR 7.33 Trillion In The First Quarter Of 2021

The President of the Republic of Indonesia, Joko Widodo when visiting the Mayora factory. (Photo: Doc. Setkab)

JAKARTA - PT Mayora Indah Tbk managed to achieve an increase in sales performance in the first quarter of 2021. However, the impact of rising commodity prices, the issuer codenamed MYOR shares experienced a decrease in net profit.

Quoted from Mayora's financial report published on the information disclosure page of the Indonesia Stock Exchange (IDX), Thursday, June 3, net sales of the company owned by the conglomerate Jogi Hendra Atmadja during January-March 2021 rose 36.36 percent on an annual basis from IDR 5.37 trillion in the quarter I 2020 to IDR 7.33 trillion.

MYOR's sales came from the packaged processed food segment of IDR 3.95 trillion and the packaged processed beverage segment of IDR 3.64 trillion.

"Domestic sales and exports grew in double digits with the export market growing stronger on an annual basis", Mayora Indah wrote in an official statement quoted on Thursday, June 3.

However, the Beng-Beng and Kopiko producer experienced a decline attributable to the owners of the parent entity. Mayora's net profit shrank 11.65 percent YoY from IDR 822.87 billion to IDR 931.39 billion.

The increase in commodity prices is like two sides of a coin that brings positive and negative impacts. For food and beverage issuers such as Mayora, food commodity prices that are creeping up continue to be watched out for because they risk raising production costs and suppressing profit margins.

The impact of rising commodity prices is reflected in the increase in Mayora Indah's cost of goods sold in the first 3 months of 2021. In the first quarter of 2021, Mayora's cost of goods sold rose 38.63 percent year on year (yoy) to IDR 5.16 trillion.

As much as 76.52 percent of which is the cost of raw materials and packaging used by the company. In nominal terms, the burden rose from IDR 2.78 trillion in the first quarter of 2020 to IDR 3.94 trillion.

In the global market, the prices of a number of food commodities which are the main raw materials for MYOR rose quite high throughout the current year of 2021. Coffee prices, for example, rose 27.68 percent year to date (ytd) to USD 1.63 per pound.

In the same period, crude palm oil (CPO) prices rose 32.29 percent to 4.064 ringgit per tonne and sugar prices rose 15.36 percent to USD 17.87 per pound.

PT Mayora Indah Tbk (MYOR) is engaged in the manufacture of food, candy, and biscuits. The company sells their products in both domestic and foreign markets.

Some of Mayora's popular products are Kopiko, Astor, Beng-Beng, Choki-Choki, Energen, and Roma Biscuits. Jogi Hendra Atmadja, the owner of Mayora, is the 7th richest person in Indonesia according to Forbes as of December 2020.

Jogi Hendra Atmadja's wealth reaches USD 4.3 billion. If converted into rupiah, Jogi's assets reach around IDR 62 trillion.