Cocoa company's financial performance during the COVID-19 pandemic: an economic value added (EVA) approach

ABSTRACT

The Covid-19 pandemic brings around a multidimensional crisis that sway the world's economy and believed to affect the performance of any industry. Cocoa processing industry, which is well known greatly contributes to Indonesia's economy, is one of industry that is suspected has a significant effect to the performance of Indonesia's economy. As one of export commodity, during the pandemic (2019-2020) the cocoa processing industry contributed for about USD 548 million to total Indonesia's foreign exchange. This lead to a question does the increase implies that the cocoa processing industry has a good financial performance? Therefore, this study aims to evaluate the financial performance of two cocoa processing company before and during Covid-19 pandemic by occupying the financial report of PT Bumi Teknokultura Unggul TBK and PT Wahana Interfood Nusantara from 2018 till 2020. The Economic Value Added approach was used to evaluate the financial performance of both company. The result of Economic Value Added (EVA) Analysis confirmed that this pandemic seem affecting the financial performance of the two company, which is both company's performance tend to decrease. Yet, a different performance between the two was depicted as well by EVA, in which the EVA of PT Wahana Interfood Nusantara is positive while the PT Bumi Teknokultura Unggul Tbk's is negative. This implies that PT Wahana Interfood Nusantara has a better financial performance than PT Bumi Teknokultura Unggul Tbk.