28 Mar 2024 Press Release
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Current Business Situation and Diamond's Strategy

•    DMND recorded a revenue growth of 9.2% and an equity increase of 7.7% compared to the previous period.
•    DMND successfully reduced liabilities by 8.9% compared to the previous period.

Overview of Diamond Group
Since the Diamond Group began its venture as an ice cream manufacturer in 1974, Diamond has been present in the community for 50 years. Diamond Group has four production facilities, three of which are located in the MM2100 - West Cikarang industrial area and one production facility in Cimahi. As of 2023, DMND has 23 direct distribution points spread across major cities in Indonesia.

Financial Performance
In 2023, DMND's revenue was recorded at IDR 9.24 trillion, an increase of 9.2% compared to the same period in 2022, which was IDR 8.46 trillion. This increase was mainly due to growth in sales in the branded product segment. DMND's total assets as of December 31, 2023, were recorded at IDR 7.17 trillion, an increase of 4.2% compared to IDR 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 IDR 1.33 trillion, a decrease of 8.99% compared to IDR 1.47 trillion as of December 31, 2022. This decrease in liabilities was due to a decrease in short-term liabilities, especially bank loans. The Company's total equity as of December 31, 2023, was recorded at IDR 5.83 trillion, an increase of 7.7% compared to IDR 5.41 trillion in the period of December 31, 2022. This increase in equity was due to the net profit recorded during 2023.

Operational Performance, Uncertainty Conditions, and DMND's Strategy
DMND's operational performance in 2023 was affected by the increased threat of supply chain disruptions and the effects of regional wars occurring in the European and Middle Eastern regions. This impacted DMND's performance, especially in terms of achieving production and sales targets. Furthermore, fluctuations in the rupiah exchange rate also present a current uncertainty for the Company. As a distributor of various renowned global brands, DMND faces the risk of currency exchange rate fluctuations, putting pressure on the Company's margins. Moreover, the price instability leading to an inflationary environment has prompted the public to limit spending on non-essential needs, causing an increase in the cost of raw materials and other cost of goods sold components. In response to these issues, the Company has taken a couple of strategic policies, one of which is to improve communication and coordination with each supplier to minimize stock shortages or accumulations. Additionally, the Company optimizes working capital management and aligns Diamond's product portfolio based on market demand to ensure the Company's products remain attractive to customers and end consumers amidst inflation trends.

These policies are prioritized to help the Company achieve its goals, which are strong and sustainable revenue growth, optimizing product affordability for retail customers, and enhancing sales force effectiveness to improve customer satisfaction. DMND's strategy focuses on sales channel expansion, digital transformation, product alignment, operational cost efficiency, and working capital management.

Sales channel expansion is carried out by continuously extending the sales reach by strengthening distribution, specifically to the hotel, restaurant, and café (Horeka) sector, modern markets, and traditional markets to gain a wider market reach. Digital transformation is continuously pursued within the Diamond group to strengthen IT security systems, enhance internal organization coordination and collaboration, and improve customer experience through the adoption of the latest technologies. Product alignment is achieved by expanding the Company's product portfolio through the addition of new production lines and non-Diamond product variants to adjust to changes in customer needs and preferences. Furthermore, DMND specifically applies the strategy of operational cost efficiency by negotiating every component of operational costs with suppliers and business partners, as well as managing loan costs for operational needs. Meanwhile, working capital management is conducted by reviewing and renegotiating payment terms with suppliers, encouraging accurate inventory procurement, and improving the efficiency of the billing process.


About PT Diamond Food Indonesia Tbk.
PT Diamond Food Indonesia Tbk. is a leading company in Indonesia that operates in the industry and distribution of food and beverage products through Subsidiaries and management consulting services. The Diamond Group began operating in 1973 as an ice cream manufacturer known as "Diamond" ice cream. Development and transformation have made the Diamond Group evolve into a company that sells consumer products with an integrated platform that combines a portfolio of leading branded products produced by the Diamond Group and international principals in various product categories.


This press release has been prepared by PT Diamond Food Indonesia Tbk. ("DMND") and is circulated for general information purposes only. All opinions and estimations included in this release constitute our assessments as of this date and are subject to change without prior notice. DMND disclaims any responsibility or liability whatsoever arising, which may be brought against or suffered by anyone as a result of reliance upon the whole or any part of the contents of this press release, and neither DMND nor its affiliated companies nor their respective employees accept responsibility for any errors, omissions, or otherwise in this press release and any inaccuracies or omissions that may arise.
 

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