Matahari profit dropped 67% on the weak demand

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PT Matahari Putra Prima Tbk (IDX: MPPA), a multi-format modern retailer in Indonesia, reported net sales of Rp13.9 trillion (US$1.1 billion) in 2015, up 2.5 percent from the previous year. However, its net income dropped by 67 percent to Rp183 billion ($13.9 million). Matahari’s performance in 2015 is below expectations, considering the double digit growth the company achieved in the past few years. The declining income is largely due to the company’s decision to take actions on inventory build-up, as well as the economic difficulties it faces in the market. In 2015, to rolling out the new hypermarket concept G7, it has introduced the premium supermarket banner Foodmart and other new or enhanced formats, including Boston, SmartClub and FoodmartExpress(FMX). Matahari currently operates 293 outlets in 68 cities throughout Indonesia, including 112 hypermarkets, 23 supermarkets, 49 minimarkets/convenience stores, 108 health and beauty stores, as well as a Wholesale store.

 

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Source: The Insiderstories
Matahari profit dropped 67% on the weak demand



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