JAKARTA - PT Mandom Indonesia Tbk. (TCID) reported a 89.11% drop in net profit, from Rp 71.48 billion in Q1/2019 to Rp 7.79 billion in Q1/2020.
Alia Dewi, TCID Secretary, explained that unfavourable conditions affected the drop in sales. Proven, there was a 21.72% drop in sales from Rp 722.79 billion (Q1/2019) to Rp 565.80 billion (Q1/2020).
Although the 11.81% drop in cost of revenue, from Rp 461.73 billion (Q1/2019) to Rp 407.19 billion (Q1/2020), the company's gross profit dropped 39.29% from Rp 261.06 billion (Q1/2019) to Rp 158.60 billion (Q1/2020). In addition, due to the relatively stable operating expenses, the company's operating income declined steeply, 99.50%, from Rp 89.86 billion (Q1/2019) to Rp 447.54 million (Q1/2020).
Helped with a gain in foreign exchanges, turning from a loss of Rp 669.25 million (Q1/2019) to a gain of Rp 11.81 billion (Q1/2020), TCID's net profit still declined 89.11%. Local sales faced more significant decline, 25.04%, compared to export sales that went down 9.51%.
Despite the difficult conditions, TCID remains positive that sales in second quarter will not be significantly affected due to their new hand sanitiser product, traded using Mandom brand. This is a strategic step from the company, knowing the Covid-19 conditions and an increase in demand and rarity of hand sanitisers. (ARM/AC)