Matahari Putra Prima Is Making Excellent Profits, Productivity Gains
Jakarta. Retailer Matahari Putra Prima posted a strong profit growth last year, thanks to strong sales and improving store level productivity.
MPP said in a statement on Wednesday that its net income grew 24.5 percent to Rp 554 billion last year. Eliminating one time gains in 2014, MPP’s net income increased 58.2 percent to Rp 625.9 billion, it said.
“The year 2014 proved to be another successful year for the company as it continued executing its growth in new stores,” said Noel Trinder, the chief executive officer at MPP.
He said such a strong result was anchored by a full year same-store sales growth of 5.4 eprcent in 2014, despite [the company] experiencing an expected slowdown in the second half of the year due to changes in the macroeconomic environment.
Indonesia’s 2014 growth was the weakest in 5-year when the economy expanded 5.02 percent for the full year. Meanwhile, the rupiah currency was also under pressure from capital outflows.
MPP last year opened 42 new stores and currently operates a total of 267 multi-format stores in 67 cities across Indonesia.
In details, the new stores consist of 8 Hypermart hypermarket chain, 28 Foodmart super-markets and 6 outlets of health-and-beauty chain Boston Health & Beauty.
Trinder, who rejoined MPP as the CEO in April 2014, said after 10 years of sustained sales and profit growth, driven by new store expansion, the company now needs to see the runway for future expansion, which he said hinged on “institutionalization and regeneration.”
He said “one of the cornerstore of the regeneration was the creation and the introduction of the 7th generation of Hypermart, or G7, which showcased a completely renovated Hypermart in Cyberpark, North Lippo Karawaci in Tangerang.
“This new G7 format is unique in Indonesia with its focus on enhancing the overall customer experience as a world class.
GlobeAsia
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