Ramayana anticipates 100% profit increase<\/p>\n
JAKARTA (JP): Publicly listed retail company PT Ramayana
\nLestari expects more than a 100 percent increase in net profit
\nthis year to Rp 201 billion (about US$25 million) from Rp 94.9
\nbillion the previous year.<\/p>\n
Corporate secretary Hardjanto Salim said here on Friday the
\nprofit target was achievable given the company's bullish
\nperformance over the past four months.<\/p>\n
\"Our net sales for the first four months (of the year) have
\nreached Rp 472 billion, or about 36.3 percent of our initial
\nsales target of Rp 1.3 trillion for the entire year,\" he said
\nafter the company's shareholders meeting.<\/p>\n
During the meeting, shareholders approved the company's plan
\nto pay dividends of Rp 40 per share for 1998.<\/p>\n
He said the company had raised this year's sales target to Rp
\n1.5 trillion from Rp 1.3 trillion due to the higher than expected
\nsales performance over the last four months and the promising
\noutlook for the coming months.<\/p>\n
He said the reopening of five stores in Greater Jakarta which
\nwere destroyed during the May 1998 riots, and the planned opening
\nof a new store in East Java later this year would contribute to
\nhigher sales growth.<\/p>\n
The expansion plan will cost around Rp 40 billion, he said.<\/p>\n
He said 12 of Ramayana's 76 stores were destroyed during last
\nMay's riots.<\/p>\n
Ramayana lost Rp 69.1 billion in revenue and 77,200 square-
\nmeters of retail space in the riots, he said.<\/p>\n
The losses were fully covered by insurance, he said, adding
\nthat the firm had received Rp 12 billion of its total Rp 89
\nbillion claim and expected to receive an additional Rp 50 billion
\nthis year.<\/p>\n
Despite the huge losses suffered during the riots, Ramayana's
\nnet sales for 1998 rose to Rp 1.29 trillion from Rp 1.13 trillion
\nin 1997, while operating income increased to Rp 128.95 billion
\nfrom Rp 97.84 billion, Hardjanto said.<\/p>\n
\"Last year was the worst situation we ever encountered. Still,
\nwe came out very positively. That makes us very optimistic about
\nthis year,\" he said.<\/p>\n
This year's political campaign and elections have not
\nsignificantly affected the company's financial performance, he
\nsaid.<\/p>\n
The general election, which took place on Monday, and the two
\nweeks of campaigning before the polls ran smoothly with no
\nreports of significant unrest. There were concerns the political
\nevents would be marred by unrest similar to the May riots.<\/p>\n
Hardjanto said Ramayana's net sales for the year surged from
\nRp 84 billion as of April to Rp 104 billion as of May, almost
\ndouble the Rp 56 billion booked by the company in the January to
\nMay period last year.<\/p>\n
\"As long as the situation remains calm and orderly, the retail
\nbusiness does not really care which party wins the elections,\" he
\nsaid.<\/p>\n
PT Ramayana Makmur Sentosa holds a 60.6 percent stake in
\nRamayana. The remaining shares are held by Paulus Tumewu (10.3
\npercent), cooperatives (0.5 percent) and the public (28.6
\npercent). (cst)<\/p>",
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