Strong quarter buoys Matahari Putra Prima
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A solid second quarter sent Matahari Putra Prima’s sales up 2.1 per cent in the first half to June 30.
The Indonesian mixed format grocery retailer has reported net sales for the six months of Rp 7 trillion (US$560 million). Of that figure, 3.7 trillion was achieved in the second quarter, an increase of 6.5 per cent on the back of new store openings. Same store sales fell 0.3 per cent in the first half and rose 4.5 per cent in the second quarter.
The company posted a net loss for the half of 20.7 billion ($1.66 million), after a healthy second quarter pared back a first quarter loss of 123 billion ($9.8 million).
MPPA says its total sales growth improved from 2.1 per cent to 8.4 per cent during the first half, after the negative effects of poor economic conditions in Sumatera/Kalimantan and permanently closed stores are excluded.
CEO Noel Trinder said second quarter sales were led by Lebaran (the two day Eid al-Fitr holiday) and a strong performance in stores that have been renovated to the new generation G7 store format.
“Aggressive inventory actions that negatively impacted earnings since the second half of 2015 have now finished, positioning MPPA well for future growth. We believe the resumption of growth which began in the second quarter will carry into the second half,” he said.
“In addition, MPPA continues to exploit the future growth opportunity of new channels by increasing our shareholding in PT GEI, operator of MatahariMall.com, to 10 per cent in June.”
As of June 30, MPPA operated 297 stores across Indonesia (112 Hypermart, 25 Foodmart, 106 Boston, 52 FMX and two SmartClub). During the first half MPPA closed three Hypermart stores (one permanently closed, one converted to Foodmart and one converted to SmartClub).
Questions & Answers
Q.Did the company make a profit in the first half of the year?
Did the company make a profit in the first half of the year?
No, Matahari Putra Prima reported a net loss of 20.7 billion ($1.66 million) for the first half. This was after a strong second quarter reduced the initial loss from the first quarter.
Q.What is the primary reason for the improved second-quarter sales performance?
What is the primary reason for the improved second-quarter sales performance?
Second-quarter sales were boosted by the Lebaran holiday and good performance from stores renovated to the new G7 format. The company also benefited from new store openings during this period.
Q.How many stores does Matahari Putra Prima currently operate and what types are they?
How many stores does Matahari Putra Prima currently operate and what types are they?
As of June 30, Matahari Putra Prima operated 297 stores across Indonesia. These included 112 Hypermart, 25 Foodmart, 106 Boston, 52 FMX, and two SmartClub locations.
Q.What actions did the company take regarding its stores during the first half?
What actions did the company take regarding its stores during the first half?
During the first half, MPPA closed three Hypermart stores. One was permanently closed, another was converted to a Foodmart, and the third was changed into a SmartClub.