Fri, 18 May 2001

Mustika Ratu expects 50% increase in income in 2001

JAKARTA (JP): Publicly listed traditional cosmetic company PT Mustika Ratu expects its profit to increase by 60 percent to Rp 50 billion (US$5.45 million) in 2001 from Rp 31 billion last year.

Mooryati Sudibyo, the company's president, said here on Thursday total revenues were projected to increase by 50 percent to about Rp 291 billion this year from 194.3 billion in 2000 as a result of the company's aggressive campaign to promote its sales overseas.

She added that the realized sales in the first quarter ending in March grew by about 55 percent over the previous year, or 5 percent higher than the initial target.

"We're confident we will reach our target," Mooryati told reporters after the annual general shareholders meeting.

Mustika Ratu produces many cosmetics and health care products ranging from soap to lipstick, herbal drinks and more recently spa resorts.

Its cosmetics brands include Puteri, Kencana, Kenanga, Taman Sari, while its spas operate under the name Taman Sari Royal Heritage Spas.

The company exports some of its products to neighboring Malaysia and several other Southeast Asian countries. Exports contribute about 20 percent to its total revenue.

Company vice president Putri Kuswisnuwardhani said that the company would increase the promotion budget this year and increase its participation in international exhibitions in an effort to further boost exports.

According to her, Brunei, Australia, China, Canada, Russia and countries in the Middle East are among the new countries targeted.

Putri said that Mustika Ratu also planned to open more spas this year, including three in Kijal, Langkawi, and Genting Highlands in Malaysia and one branch in Melbourne, Australia.

She said that the spas would be established to meet the need for spas offering traditional therapies and beauty treatments in those countries. They would be opened in cooperation with local companies under a franchise agreement.

The company would also open a local spa in Pekanbaru, Riau. Mustika Ratu already has existing spas in Yogyakarta, and in Jakarta, Putri said.

She said the new spas were expected to contribute 7 percent toward total revenues next year, up from 2 percent this year.(05)