PT Matahari reports strong growth during first half

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)