Indonesian hypermarket operator Matahari Putra Prima has reported a 60 per cent increase in net income in the first quarter of 2015.
The company says total sales rose 7.1 per cent quarter-on-quarter to Rp 3.35 trillion, (US$257.6 million). Profit was 81.6 billion ($6.27 million). Same store sales were down 1.8 per cent largely due to a weaker economy and increasing competition.
“We are pleased with our net income results in the first quarter, despite a very challenging sales environment,” said CEO Noel Trinder.
“Our business benefitted from the productivity measures taken and realisation of expense saving programs initiated in mid-2014 by the management team.
“Coupled with a renewed focus on margin enhancement, it enabled MPPA to post a strong net income,” Trinder said.
The company was especially pleased with the performance of its first G7 store in North Lippo Karawaci and the response from customers that has driven and sustained a superior increase in both traffic and average purchase sizes.
“These results support our decision to remodel selected stores, despite the impact closues have on same store sales growth. The investment we make today in our core business will fuel our earnings growth in 2016 and beyond,” said Trinder.
In the first three months of 2015, MPPA opened 14 new stores: two hypermarts, one Foodmart supermarket, nine Foodmart Express stores and two Boston Health and Beauty stores.
