KFC Manager in RI Records Loss of IDR 152 Billion, Why?

Jakarta, CNBC Indonesia – The issuer that manages the fast food restaurant KFC Indonesia, PT Fast Food Indonesia Tbk. (FAST) recorded a net loss of IDR 152.41 billion in the third quarter of this year. This loss increased by 815.69% compared to the previous year’s loss of IDR 17.16 billion.

Citing information disclosure from the Indonesian Stock Exchange (BEI), until September 2023, FAST’s revenue will increase by 7.04% on an annual basis to IDR 4.61 trillion.

The increase in revenue was contributed by the food and beverage segment which rose 7.39% to IDR 4.6 trillion

Meanwhile, cost of goods sold amounted to IDR 1.72 trillion or increased 6.38% annually. Thus, FAST still posted gross profit growth of 7.43% on an annual basis to IDR 2.89 trillion.

However, sales and distribution expenses increased from previously IDR 2.2 trillion to IDR 2.45 trillion. Then general and administrative expenses rose 19.96% on an annual basis to IDR 631.17 billion.

So this caused FAST to record an operating loss of IDR 146.62 billion in the third quarter of this year from previously recording a profit of IDR 20.48 billion.

Total assets amounted to IDR 3.77 trillion as of the third quarter or down 1.21% year-to-date (YtD). Meanwhile, liabilities increased 3.98% YtD to IDR 2.87 trillion, while equity reached IDR 904.88 billion or corrected 14.72% YtD.

Management explained that a number of factors caused the company’s operations to be eroded, including an increase in the prices of several raw materials due to inflation and additional material handling costs as a result of an increase in minimum wages and an increase in fuel prices.

“Not all increases in the price of the main raw material, namely chicken, can be covered by an increase in menu selling prices which will ultimately result in a decrease in transactions,” said management, Tuesday (21/11).

Apart from that, there is tough competition with other well-known QSRs who are both taking advantage of the post-pandemic conditions.

Then, there is an increase in the national minimum wage which cannot be covered by minimal menu price adjustments. Also, the increase in the exchange rate resulted in an increase in the price of imported raw materials.

(fsd/fsd)