Indofood conquers pandemic headwinds to post 10% growth in 2020

Indofood Sukses Makmur has posted a 10% growth in consolidated net sales to IDR46.64 trillion for the 2020 financial year ended 31 December. Its advertising and promotions for 2020 amounted to IDR1.88 billion while its core profit increased 13% to IDR5.82 trillion. Meanwhile, Indofood's operating margin expanded from 17.5% to 19.7%, while income from operations increase by 24% to RM9.20 trillion. 

Indomie reportedly contributed IDR 31.96 trillion of Indofood's total sales, CNN Indonesia said, while sales of dairy products amounted to IDR8.3 trillion. Meanwhile, sales for snacks was IDR2.9 trillion, while food seasonings hit IDR2.8 trillion, and drinks IDR1.2 trillion. Nutrition and special meals had net sales of IDR999 billion, CNN said. Indomie is undoubtedly one of the popular products by Indofood. A 2019 Kantar Indonesia study found that Indomie recorded a 7% consumer reach point growth, with almost all urban Indonesian households have purchased this brand around three to four times a month.

President director and CEO Anthoni Salim said its growth amidst the pandemic is supported by its strong product brands, resilient integrated business model and robust distribution networks. "Indofood still continued to deliver a good performance by dynamically adapting to rapidly changing trends and consumer behaviors. As we brace for new challenges and opportunities in the year ahead, we will maintain our competitiveness, while staying vigilant in safeguarding our employees," he added.

Last month, it was reported that the company acquired PepsiCo's shares through their joint venture company, Indofood Fritolay Makmur. As a result, marketing for PepsiCo's Cheetos, Doritos, and Lay's has been temporarily halted, CNN Indonesia said. The acquisition was valued at IDR494 billion and has positioned Indofood to hold 99.99% of the Indofood Fritolay Makmur shares. Fritolay, PepsiCo, or other affiliated companies will not be allowed to produce, sell or distribute snack products in Indonesia that is in competition with Indofood Fritolay Makmur products for three years after the termination, CNN reported.

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