Matahari nine-month profit rises almost threefold on strong sales

Matahari nine-month profit rises almost threefold on strong sales

PT Matahari Putra Prima, Indonesia's biggest retailer by sales, said net profit rose almost threefold in the first nine months of the year on higher sales and a gain from an asset sale.

Unaudited net income increased to Rp 141.5 billion (US$14 million), or Rp 56 a share, from Rp 51.2 billion, or Rp 20 rupiah, the Tangerang, Banten-based company said in a statement to the Jakarta Stock Exchange filed on Monday.

Sales gained 22 percent to Rp 4.52 trillion.

The company posted Rp 9.1 billion in other income in the nine months, which included a gain from a stake sale, it said.

Higher consumption in Indonesia has prompted at least 11 overseas retailers to set up operations in the country in the past six years.

Indonesia's economy may expand 5.8 percent this year, Coordinating Minister for Economic Affairs Aburizal Bakrie said on Oct. 25.

The economy grew 5.1 percent last year, the fastest since 1996, driven by higher spending.

"The other income came from the sale of our stake in" PT Hero Supermarket, Director Danny Kojongian said in a phone interview after the result was submitted.

Matahari last month sold its 7.9 percent stake in Hero Supermarket to Dairy Farm International Holdings Ltd. The company may post a net gain of Rp 92 billion this year from the sale, Matahari said Sept. 26.

Shares of Matahari gained 2.4 percent to Rp 860 on the Jakarta Stock Exchange. -- Bloomberg