Jakarta, October 20, 2023 – PT Diamond Food Indonesia, Tbk. (“DMND” or “Diamond”) today conducted a Public Expose on DMND’s performance in the first half of 2023. In this opportunity, the DMND Board of Directors presented an overview of the Diamond Group, DMND’s operational and financial performance in the first half of 2023, the conditions of uncertainty and DMND’s strategy for 2023, as well as the implementation of Corporate Social Responsibility by the Diamond Group in 2023.
Overview of Diamond Group and Operational Performance
Since the Diamond Group began its business as an ice cream producer in 1974, it has been 49 years since Diamond has been present in the community. The Diamond Group has four production facilities, three of which are located in the MM2100 – Cikarang Barat industrial area and one production facility in Cimahi. In 2023, DMND recorded having 23 distribution points spread across major cities in Indonesia. As of 2023, DMND has 4 subsidiaries through DMND’s subsidiary entity, PT Sukanda Djaya, and 1 subsidiary through the subsidiary entity of PT Diamond Cold Storage, which is not consolidated into DMND.
DMND’s operational performance in the first half of 2023 was driven by changes in consumer behavior. The market condition faced unprecedented circumstances, caused by price increases, geopolitical conflicts, and disruptions in the supply chain. Consequently, consumers have changed their consumption habits and priorities through lifestyle changes, reducing spending on eating out and entertainment, economizing daily necessities shopping, purchasing economically packaged products, and shifting to high value-for-money products. In response, DMND has implemented policies including adjusting product prices to remain competitive, aligning products with market demand, and continuously monitoring the decline in consumer purchasing power, especially the target market for DMND products.
Financial Performance
In the first half of 2023, DMND’s profit was recorded at Rp.185 billion, a decrease of 6.5% or Rp.13 billion compared to the same period in 2022, which was recorded at Rp. 198 billion. DMND’s total assets were recorded at Rp.7.21 trillion, an increase of 4.9% or Rp.336 billion compared to Rp.6.88 trillion on December 31, 2022. This increase was due to an increase in non-current assets, especially fixed assets. DMND’s total liabilities were Rp. 1.62 trillion, an increase of 10.3% or Rp151 billion compared to Rp.1.47 trillion as of December 31, 2022. The increase in liabilities was due to an increase in short-term liabilities, especially bank loans. The Company’s total equity as of June 30, 2023, was recorded at Rp. 5.60 trillion, an increase of 3.4% or Rp185 billion compared to Rp.5.41 trillion for the period of December 31, 2022. This increase in equity was due to the net profit recorded during the first six months of 2023.
Conditions of Uncertainty and DMND’s Strategy
Businesses and consumers are faced with unprecedented conditions. In today’s dynamic and uncertain market landscape, changes in consumer behavior have affected various aspects due to price increases, geopolitical conflicts, and supply chain disruptions. To survive in these conditions, consumers are changing their consumption habits and priorities, including lifestyle changes, reducing spending on eating out and entertainment, economizing on daily necessities, purchasing economically packaged products, and shifting to high value-for-money products. In response, Diamond has adjusted prices to remain competitive, aligned products with market demand, and monitored the trend of declining consumer purchasing power, especially the target market for Diamond products.
In 2023, DMND set three performance targets: double-digit revenue growth, increasing retail consumer penetration for the lower-middle class with more relevant products, improving sales force productivity, and enhancing customer experience through digital transformation. To achieve these targets, DMND focuses on expanding the distribution network, digital transformation, product alignment, and operational cost efficiency. “Management shows high optimism towards business prospects until the end of 2023,” said Philip Min Lih Chen, Director of DMND.
The expansion of the distribution network is carried out by continuously adding new customers, including new contract distributors, and strengthening its presence in the e-commerce market by actively collaborating with online merchants. Digital transformation continues within the Diamond Group, enhancing customer experience in the food service sector with the updated Sukanda Onelink application, and digitizing internal business processes to drive team productivity. Furthermore, Chen Tsen Nan, President Director of DMND, stated, “The Company is committed to strengthening customer loyalty through strategic integration that includes a deep understanding of customer needs and preferences in shopping.”
Product alignment is also carried out to ensure the relevance of the Company’s product portfolio with market demand, in terms of product variants, sizes, and price ranges. Furthermore, the strategy of operational cost efficiency continues to be applied by DMND, specifically in the fields of production, distribution, and various other operational activities, particularly to ensure the competitive advantage of the Company’s products in the market.
