Indofood Receives IDR 1.4 Trillion Profits Amid The COVID-19 Pandemic

Illustration. (Photo: Instagram @indomie)

JAKARTA - Processed food producer, PT Indofood Sukses Makmur Tbk, pocketed a net profit in the first quarter of 2020 worth IDR 1.4 trillion. This figure is an increase of 4 percent over the same period in the previous year which was valued at IDR 1.35 trillion.

Indofood President Director Anthoni Salim said Indofood's profit was driven by a 1 percent increase in consolidated net sales to Rp19.3 trillion compared to Rp19.17 trillion last year.

"In the midst of today's challenging global conditions, we managed to maintain good performance in the first quarter of 2020. Going forward, we will remain vigilant and continue to improve our competitiveness," said Anthoni in his written statement, Friday, May 22.

Nevertheless, the management of this company coded INDF shares succeeded in reducing the cost of goods sold by 2.6 percent from Rp13.37 trillion to Rp13.02 trillion in the first quarter of 2020. Thus, the gross profit achieved by Indofood reached Rp6.28 trillion, up 8.3 percent from the same period the previous year IDR5.79 trillion.

Meanwhile, the operating profit of the popular food producer Indomie rose 33 percent to IDR 3.43 trillion from IDR 2.58 trillion. The operating profit margin jumped to 17.8 percent from 13.4 percent. However, Indofood's financial burden surged 136 percent to Rp1.03 trillion.

Profit for the period collected by Indofood reached IDR 1.8 trillion, up 10.4% from the previous year's IDR 1.63 trillion. Meanwhile, net profit for the period attributable to the parent entity reached Rp1.4 trillion, up 4 percent from the previous Rp1.34 trillion.

As of March 31, 2020, the company's total liabilities rose 9 percent to IDR46.09 trillion with IDR 56.57 trillion in equity. Meanwhile, Indofood's total assets reached IDR 102.66 trillion.

Indofood is the holding company of flour producer Bogasari, instant noodle producer Indomie and food products PT Indofood CBP Sukses Makmur Tbk. (ICBP), the oil palm plantation company PT Salim Ivomas Tbk. (SIMP), to PT Perusahaan Perkebunan London Sumatra Indonesia Tbk. (LSIP).

Indofood's shares as of March 31, 2020 were owned by First Pacific Investment Management Limited (FPIML) by 50.07 percent, Anthoni Salim 0.02 percent, and the public by 49.91 percent. FPIML is a public company owned by Anthoni Salim which is listed on the Hong Kong stock exchange.

Anthoni Salim, who is the successor to the Salim Group from the late Sudono Salim (Liem Sioe Liong), is the 6th richest conglomerate in Indonesia according to Forbes magazine 2019. The 71-year-old man is estimated to have a wealth of 5.5 billion US dollars, equivalent to IDR 88 trillion.

The coffers of his wealth come from the world's largest instant noodle maker Indofood, banking, to telecommunications, and other business octopuses at home and abroad.

In trading Wednesday, May 20, 2020, INDF shares fell 4.81 percent or 325 points to a level of IDR 6,425 per share. INDF's stock market capitalization on the Indonesia Stock Exchange reached IDR 56.41 trillion.