Tuesday, 27 October 2020

Semester 1 2020 Performance Declines, Garudafood Remains Optimistic with Prochiz Acquisition

Jakarta, 27 October 2020 - PT Garudafood Putra Putri Jaya Tbk ("Garudafood") held a virtual public expose at Garudafood's head office in Jakarta on 27 October 2020. The public expose was led by Hardianto Atmadja, President Director of Garudafood, accompanied by Robert Chandrakelana Adjie and Paulus Tedjosutikno as the Director of Garudafood. The public expose presented the company's financial performance in Semester 1-2020 as well as the latest operational conditions.

Garudafood's performance in Semester 1 of 2020 shows a trend of sales experiencing a slowdown due to the pandemic. Garudafood's financial report in June 2020 also noted that the company experienced a decline in net sales by 8.38%, from Rp 4,270 billion for the same period in the previous year to Rp 3,914 billion. On the other hand, net profit was corrected by 49.77% from Rp 229 billion for June last year to Rp115 billion. Total assets increased by 8% or Rp 5,468 billion, consisting of total liabilities of Rp 2,874 billion and total equity of Rp 2,594 billion.

Hardianto Atmadja - President Director of Garudafood explained, "The COVID-19 pandemic has had a significant impact on all industrial sectors, among others the food and beverage industry. This is reflected in Garudafood’s performance, our sales in Semester 1 of 2020 declined compared to the previous year. However, we hope the economy in 2021 will gradually improve so Garudafood's business can grow in 2021. We remain optimistic and careful in seizing every opportunity to develop Garudafood's business, such as through an open collaboration strategy.”

Therefore, at the end of 2020, Garudafood carried out its corporate action plan, namely the acquisition of 55% (fifty-five percent) shares of PT Mulia Boga Raya Tbk ("MBR") on 14 October. The total transaction was Rp 953,700,000,000 (nine hundred and fifty-three billion seven hundred million rupiah) with a total of 825,000,000 (eight hundred and twenty-five million) shares. For information, MBR is a producer in the cheese processing industry with the brand "Prochiz" which is well known by Indonesia people, through various product variants, namely Prochiz Cheddar, Prochiz Gold Cheddar, Prochiz Slice, Prochiz Gold Slice, Prochiz Easy Melt, Prochiz Spready which can be spread on bread and Prochiz Mayo as mayonnaise for salad dressings and other side dishes.

Through this acquisition, Garudafood's financial statements will be consolidated with MBR which will increase Garudafood's profit and sales. In the future, Garudafood will synergize the two businesses in terms of operational activities, such as product development, marketing activities, end-to-end supply chain, as well as implementing complementary strategies for the development and expansion of business networks, both domestically and internationally.

In the past, Garudafood also implemented the open collaboration strategy by collaborating with global partners who have successfully developed the Bugles brand through the Garuda O'Corn product, which is an innovative product as a method to leverage the Garuda brand to the non-peanut category. Throughout 2020, Garudafood has launched new products in 2 different categories, namely Chocolatos Milk Drink in Tetra Pak packaging for the dairy category as well as Garuda Potato and Garuda O'Corn for the snack category.