NFO earnings resilient, likely to bounce back

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Indonesia Berita Berita

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The earnings of NFOs will remain resilient and bounce back if last year’s implementation of the MCO is anything to go by.

However, it is leaving FY22 estimated unchanged as “we remain positive on the earnings resilience of NFOs”.

Analysts also did not rule out the possibility that the current MCO will last longer than the scheduled two weeks, as was the case in March last year that saw NFO outlets only reopening 13 weeks later on June 17,2020. Before the latest MCO, its channel checks showed that most NFOs’ gross sales or draw have recovered to 85%-90% of pre-Covid-19 levels.

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