PT MATAHARI PUTRA PRIMA TBK For Immediate Release
MPPA DELIVERS RP6.7 TRILLION SALES IN 1H 2017 MANAGEMENT FOCUSED ON PERFORMANCE, PRODUCTIVITY & EFFICIENCY (PPE) TO LOWER OPERATING COSTS IN 2ND SEMESTER 2017 ONWARDLippo Village, Tangerang Monday, July 31, 2017
Despite continuing market headwinds in 1H17, MPPA's performance reflected improvements in 2Q17 in both sales and profit in contrast to 1Q17. This was primarily driven by several factors such as: a 2-‐week shift in seasonal sales; improving trend of gross profit margin by 173 basis point vis-‐à-‐ vis 1Q17; and cost efficiency measures put in place earlier, which resulted in reduction of G&A expenses by 16.5% from Rp584 billion in 1Q17 to Rp488 billion in 2Q17.
Sales for the first half 2017 came in lower by 3.0% y-‐o-‐y at Rp6.7 trillion while SSSG was still negative. The business restructuring over the last 18 months is starting to pay off as MPPA sales have been consistently tracking better than its major competitors within the hypermarket/supermarket segment in modern retail. Fresh Foods & Grocery Division has posted positive growth of +2.5% & +0.7% respectively for 1H 2017. The overall sales growth has been largely impacted by weaker sales growth of electronics & household categories due to major restructuring
& correction of assortment imbalances. Despite the relatively flat sales environment, gross profit margin & operating costs are expected to improve as a direct result of these restructuring efforts.
MPPA's 1H 2017 gross profit margin contracted by 100bps y-‐o-‐y to 14.9%, primarily due to investment in the Company's recent pricing strategy in lowering over 5,000 items to regain a competitive position with particular emphasis on a selected basket of fast moving consumer items of significance to the minimarkets. Early indications of the pricing strategy are encouraging. One of the major strategic changes in the restructuring process was the "shift to cost" allowing MPPA to better align its business model by leveraging its data at a SKU level.
MPPA's strategy for Growth focuses on Five Pillars of which the fifth pillar, the omni-‐channel business, has started to gain traction as modern Indonesian consumers continue to embrace the digital lifestyle and smartphone technology for their daily shopping and social activities. The Company is leveraging its growing network of over 300 distribution points across 73 cities consisting of 117 hypermarkets, 26 supermarkets, 30 convenience stores, 112 health & beauty centers and its total wholesale network to support our omni-‐channel business to grow top line sales. We believe our online business will strategically complement our existing traditional brick & mortar business becoming a positive contributor to positive SSSG in future.
Net loss for the period was at Rp170 billion, down from net income of Rp25 billion registered last year, which was predominantly driven by lower sales, lower gross profit margin and allowances on receivables booked in the first quarter this year.
Given the continuing soft retail sales environment, the MPPA CEO recently announced several major changes, one of which senior executives number will be rationalized in support of the productivity drive communicated in the 2016 Annual Report (page 85). This will result in an improvement in head office cost efficiency up to 20% by December 2017 on a normalized basis. Having already established significant productivity measures at store level, the management is focused on reducing head office costs to below its 2015 level in 2018.
1H 2017 Rp mn 1H 2016Rp mnGrowth
NET SALES 6,716,356 6,923,163 -‐3.0% OPERATING PROFIT (LOSS) (186,324) 48,126 n.m INCOME (LOSS) FOR THE PERIOD (169,827) 24,893 n.m For further information, please contact:Email: corporate.communication@hypermart.co.id
About PT Matahari Putra Prima Tbk (MPPA)PT Matahari Putra Prima, one of Indonesia's largest retailers, employs more than 10,000 associates who serve customers in 117 Hypermarkets (Hypermart), 4 Wholesale outlets (SmartClub), 26 Supermarkets (Foodmart Primo/Fresh), 112 Health and Beauty format stores (Boston Health & Beauty), and 30 Minimarket/ Convenience stores (FMX). As of 30 June 2017, MPPA operates 289 stores in 73 cities throughout Indonesia. MPPA continues to receive both domestic and international acknowledgement with several awards such as: 2016 SWA:100 Indonesia's Best Wealth Creator, 2016 Brandz™ Top 50 Most Valuable Indonesia Brands by Millward Brown & WPP, 2016 Anugerah Indonesia TBK Company -‐III-‐ 2016 (APTI-‐III-‐2016), 2016 Top 10 Retailers Certificate of Distinction by Retail Asia, 2016 Indonesia GCG Award II - for Retail Category by Economic Review and IPMI (International Business School), 2016 Indonesia's Most Admired CEO from Warta Ekonomi.
This press release has been prepared by PT Matahari Putra Prima Tbk (MPPA) and is circulated for the purpose of general information only. It is not intended for any specific person or purpose and does not constitute a recommendation regarding the securities of MPPA. No warranty (expressed or implied) is made to the accuracy or completeness of the information. All opinions and estimations included in this release constitute our judgment as of this date and are subject to change without prior notice. MPPA disclaims any responsibility or liability whatsoever arising which may be brought against or suffered by any person as a result of reliance upon the whole or any part of the contents of this press release and neither MPPA nor any of its affiliated companies and their respective employees and agents accepts liability for any errors, omissions, negligent or otherwise, in this press release and any inaccuracy herein or omission here from which might otherwise arise.
Forward-Looking StatementsCertain statements in this release are or may be forward-looking statements. These statements typically contain words such as "will", "expects" and "anticipates" and words of similar import. By their nature, forward looking
statements involve a number of risks and uncertainties that could cause actual events or results to differ materially from those described in this release. Factors that could cause actual results to differ include, but are not limited to, economic, social and political conditions in Indonesia; the state of the property industry in Indonesia; prevailing market conditions; increases in regulatory burdens in Indonesia, including environmental regulations and compliance costs; fluctuations in foreign currency exchange rates; interest rate trends, cost of capital and capital availability; the anticipated demand and selling prices for our developments and related capital expenditures and investments; the cost of construction; availability of real estate property; competition from other companies and venues; shifts in customer demands; changes in operation expenses, including employee wages, benefits and training, governmental and public policy changes; our ability to be and remain competitive; our financial condition, business strategy as well as the plans and objectives of our management for future operations; generation of future receivables; and environmental compliance and remediation. Should one or more of these uncertainties or risks, among others, materialize; actual results may vary materially from those estimated, anticipated or projected.
Specifically, but without limitation, capital costs could increase, projects could be delayed and anticipated improvements in production, capacity or performance might not be fully realized. Although we believe that the expectations of our management as reflected by such forward-looking statements are reasonable based on information currently available to us, no assurances can be given that such expectations will prove to have been correct. You should not unduly rely on such statements. In any event, these statements speak only as of the date hereof, and we undertake no obligation to update or revise any of them, whether as a result of new information, future events or otherwise.
INVESTOR UPDATE | ||||||
For Further Information please visit www.ir.hypermart.co.id | ||||||
PT. MATAHARI PUTRA PRIMA Tbk. | ||||||
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION June 30, 2017 (Expressed in millions of Indonesian rupiah, except share data) Jun 30, 2017 Dec 31, 2016 Dec 31, 2015 *) | June 30, 2017 | Dec 31, 2016 | Dec 31, 2015 *) | |||
ASSETS | 551,818 28,498 601,685 2,679,460 62,860 103,844 23,277 4,051,442 27,828 310,939 1,552,584 186,088 389,342 3,215 80,492 183,542 2,734,030 6,785,472 | 248,697 46,533 883,880 2,747,344 42,033 108,682 25,289 4,102,458 23,394 189,760 1,575,559 201,009 381,686 1,739 14,022 212,107 2,599,276 6,701,734 | LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES & EQUITY LIABILITIES CURRENT LIABILITIES 408,945 Short-term bank loans 26,012 Trade payables 647,867 Accruals 2,497,520 Taxes payable - Short-term employee benefit liabilities 104,345 Other current financial liabilities 25,050 Other current liabilities 3,709,739 Total current liabilities NON-CURRENT LIABILITIES 22,253 Long-term bank loans 31,750 Long-term employee benefit liabilities 1,461,743 Other non-current liabilities 229,462 Total non-current liabilities 330,220 3,984 Total Liabilities 67,826 175,783 EQUITY Equity Attributable to Equity Holders of Parent Entity 2,323,021 Capital stock - Rp 50 par value per share as at June 30, 2017, December 31, 2016 2016 and and December 31, 2016 and January 1, 2016/December 31, 2015 6,032,760 Authorized- 10,800,000,000 shares issued and fully paid- 5,377,962,800 shares as at June 30, 2017 and December 31, 2016 and January 1, 2016/ December 31, 2015 Additional paid-in capital - net Retained earnings Appropriated Unappropriated Total Equity Attributable to Owners of the Parent Non-controling interests Total Equity TOTAL LIABILITIES AND EQUITY | 100,000 | 140,000 | 250,000 |
CURRENT ASSETS | ||||||
Cash and IN BANKS | ||||||
Trade receivables - third parties | 2,372,900 | 2,317,779 | 1,763,250 | |||
Other receivables | 475,181 | 400,131 | 360,274 | |||
Inventories | 54,458 | 54,105 | 82,271 | |||
Prepaid taxes | 52,808 | 80,785 | 55,348 | |||
Prepaid expenses | 275,002 | 249,538 | 210,233 | |||
Other current assets | 91,704 | 91,542 | 93,333 | |||
Total Current Assets | 3,422,053 | 3,333,880 | 2,814,709 | |||
NON-CURRENT ASSETS | 770,000 | 610,000 | 400,000 | |||
Other non-current financial assets | ||||||
Other long term investments | 256,379 | 256,867 | 247,012 | |||
Fixed assets | 77,135 | 71,255 | 56,895 | |||
Rental advances and deposits | 1,103,514 | 938,122 | 703,907 | |||
Long-term prepaid rents | ||||||
Intangible assets | 4,525,567 | 4,272,002 | 3,518,616 | |||
Deferred tax assets | 268,898 | 268,898 | 268,898 | |||
Other non-current assets | ||||||
Total Non-Current Assets | ||||||
TOTAL ASSETS | ||||||
774,578 | 774,578 | 774,578 | ||||
36,000 | 34,000 | 32,000 | ||||
1,180,399 | 1,352,226 | 1,438,638 | ||||
2,259,875 | 2,429,702 | 2,514,114 | ||||
30 | 30 | 30 | ||||
2,259,905 | 2,429,732 | 2,514,144 | ||||
6,785,472 | 6,701,734 | 6,032,760 | ||||
PT Matahari Putra Prima Tbk published this content on 31 July 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 31 July 2017 11:44:01 UTC.
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