Supermarket group Matahari Putra Prima (MPPA) of Indonesia recorded a net profit of RP32.6 billion (US$2.5 million) despite a drop in net sales to RP10.4 trillion for the nine months ended September 30.
As expected, says the group in announcing its interim results, a change in date of the Lebaran national holiday from the third to the second quarter as well as economic conditions in Kalimantan and Sumatra had a negative impact.
The gross margin was 16.3 per cent and operating expenses 15.4 per cent, while same-store sales growth for the period and for the third quarter fell by 2.9 and 8.9 per cent respectively. Without store closures for renovation, MPPA says the figures would have been 1.3 per cent up and 2.9 per cent down.
In the third quarter, MPPA changed its accounting methods, which is says will enable it to implement a more aggressive pricing strategy, better analyse profitability and increase control over margin and inventory productivity.
“Although the third quarter was difficult, sales started to show improvement late in the quarter,” says CEO Noel Trinder. “Actions taken earlier in the year have produced a significant reduction in merchandise inventories to a sustainable level to support future growth”
He says 15 stores were opened during the nine months.
“Following an adjustment of quarter-four sales to reflect current conditions, MPPA is forecasting an EBITDA of RP250 billion, bringing the year’s guidance to RP585 billion.”
As of September 30, MPPA had 294 stores in 68 cities across Indonesia (112 Hypermarts, 25 Foodmarts, 106 Bostons, 49 FMXs and two SmartClubs).
