Hero Supermarket reports profit decline

JAKARTA (JP): PT Hero Supermarket, a publicly listed retail company, yesterday announced a profit decline in spite of an increase in its sale revenues in 1994.

The company's president, Ipung Kurnia, told reporters after a shareholder meeting yesterday that the firm's after-tax profit declined to Rp 15 billion (US$6.7 million) in 1994 from Rp 16 billion in 1993.

"The profit decline was caused by high spending for the rebuilding of our supermarket in Mampang Prapatan, South Jakarta, that was razed by fire last September, and for the establishment of six new outlets in Greater Jakarta, Bandung and Yogyakarta," said Ipung.

Earlier reports said that the fire caused a total loss of Rp 3.4 billion.

Hero's chief commissioner, Nurhajati, told the annual shareholders' meeting at Le Meridien hotel yesterday that the company's sales increased by 13.7 percent to Rp 638 billion last year from Rp 560 billion in 1993.

The company's shareholders agreed yesterday on the distribution of dividends worth Rp 5.8 billion or Rp 50 per share in August.

The supermarket company, which was founded in 1971, operates 62 outlets throughout the country, 43 of which are in Jakarta. It is slated to set up six more outlets in 1995.

Ipung said the expansion is aimed at facing fiercer competition in the future if the government allows the entrance of foreign investors in the retail business.

"In anticipating the coming of foreign retailers, we are still committed to maintaining the highest international standard of quality and service," he said. (kod)