PT Matahari reports strong growth during first half

JAKARTA (JP): Publicly listed retail company PT Matahari Putra Prima announced solid growth in sales during the second semester of this year due to the sharp increase in sales from its supermarket operation.

The company said on Wednesday that sales during the first half to June rose by 26 percent to Rp 1.7 trillion (about US$200 million) from Rp 1.35 trillion during the same period last year.

Net profits before tax rose by 21.2 percent to Rp 188 billion from Rp 155 billion last year, the company said. But it added that the net profit after tax was unchanged at Rp 133 billion due to a higher tax rate of 29 percent from 14 percent in 1999.

The company said the stronger growth rate was seen in most of its branches in the country, with stores located in the Greater Jakarta area leading the way with an average growth of 34.2 percent, followed by the rest of Java at 30.2 percent.

Operating profits rose by 41.7 percent to Rp 110 billion as of June from Rp 78 billion in the same period last year, despite higher operating expenses due to higher marketing costs, salaries and increased electricity rates.

Hanifah Komala, the company's CEO, attributed the higher sales to the significant increase in the supermarket's offering.

He said the net cash position fell to Rp 270 billion as of June 30 from Rp 451 billion in the same period last year due to the acquisition of Menara Matahari and a higher inventory.

He said Matahari, which operates 77 department stores in the country, including 60 supermarkets, recently secured Rp 200 billion in standby loan facilities from a domestic bank and a foreign bank to finance its inventory and trade payable gap. (hen)