Indonesia’s Matahari buoyed by closing down of losses

New leadership taking over the helm of troubled Indonesian hypermarket retailer Matahari Putra Prima (MPPA) have been presented with an improved set of trading figures.

While sales were down in the first quarter of the new fiscal year, so were expenses, leading to a slight narrowing of the company’s losses.

Net sales of Rp2.9 trillion (US$208 million) were lower than at the same time last year, despite a 3.9 per cent increase in the number of customer transactions.

The company said that reflected a lower-price strategy and signals “positive traction and improved engagement with our customers”.

“The company will continue to put forward customer-centricity as its focus in driving its business,” it said in a statement.

Efficiency measures put in-place last year saw general and administrative expenses fall 28.4 per cent, resulting in a net loss of Rp159.8 billion ($11.47 million) for the quarter, a marginal improvement on the Rp176.7 billion ($12.68) loss of the first quarter last year.

Early last month, MPPA reported a loss of US$86.8 million, and just days later named new people in the roles of CEO and president, along with announcing plans to raise IDR800 billion (US$58 million) in fresh capital.

This week, the company says it remains “optimistic” for this trading year.

“The upcoming Lebaran season as well as the major events happening in the second half of the year, including the nationwide regional election, Asian Games and the World Cup will be one of the catalysts that drives demand growth for the retail business in Indonesia,” MPPA said in a statement.