Diamond Food postpones production line addition
JAKARTA - PT Diamond Food Indonesia Tbk (DMND) has postponed its plan to add more production lines using its capital expenditure (capex) due to the coronavirus (COVID-19) pandemic, said DMND Corporate Secretary Remanja Dyah Intansuri in a public expose sheet on Friday (13/11).
According to Ms Intansuri, the postponement was decided to ease the company's cashflow during the pandemic. "The project will be resumed after the economic condition becomes more conducive, and we will maximise our capex," she said.
This year DMND budgeted Rp 650 billion in capex.
Currently the company has 21 distribution points and four production facilities. It produces over 50 food and beverage brands with 1,000 vehicles to support distribution.
DMND's management believes that although market conditions are yet to return to normal, purchasing power has started to recover with the relaxation of large-scale social restrictions. (LK/MS)