Indofood's Sales Under Scrutiny Following the Discovery of a Cancer-Causing Substance in Indomie

Indomie, a globally recognized Indonesian instant noodle brand, has been pulled from shelves in Taiwan. The Taiwan Department of Health reported that two of its products contain a cancer-causing substance.

One of these instant noodles is Indomie Special Chicken Flavor. According to The Star, citing *Katadata*, this discovery was made following an examination of instant noodles available in Taiwan on April 24, 2023. Besides Indomie, a cancer-causing substance was also found in Ah Lai White Curry Noodles from Malaysia.

The Taiwan Department of Health stated that both brands contain ethylene oxide, a chemical compound linked to lymphoma and leukemia.

Ethylene oxide is toxic if ingested or inhaled. In addition to causing lymphoma and leukemia, ethylene oxide can cause serious skin and eye irritation, and may even lead to birth defects.

Despite the recall, how have the brand's sales performed?

PT Indofood Sukses Makmur Tbk. operates in four business segments. The company, headed by Anthony Salim, produces more than just instant noodles.

Firstly, the Consumer Branded Products Group (CBP Group) produces or manages instant noodles, dairy products, snacks, seasonings, specialty foods and nutrition, and beverages.

Secondly, the agribusiness group comprises plantations, vegetable oils and fats. Thirdly, the Bogasari group includes flour and instant pasta. Finally, there is the distribution group.

Total sales across all products reached Rp 110.83 trillion in 2022. This figure surged from Rp 99.35 trillion in 2021.

The 2021 figure also showed a 22% increase from Rp 81.73 trillion in 2020, driven by growth across all groups.

A comprehensive breakdown of each group's contribution to net sales in the 2022 annual report is unavailable. However, in 2021, the CBP group recorded a 21% increase in total sales value, reaching Rp 56.96 trillion compared to Rp 46.97 trillion in 2020.

The sales increase was supported by higher sales volume in both domestic and international markets. Generally, Indofood's sales have increased year-on-year.

Indofood's sales across all groups from 2017-2022:

* 2017: Rp 70,186,600,000,000
* 2018: Rp 73,394,700,000,000
* 2019: Rp 76,593,000,000,000
* 2020: Rp 81,731,500,000,000
* 2021: Rp 99,345,600,000,000
* 2022: Rp 110,830,272,000,000