Nov 3, 2010

Mitra Adiperkasa sets 15% growth

Publicly listed PT Mitra Adiperkasa Tbk this year estimated its revenues to grow 13% from last year and to grow by 15% to Rp5.34 trillion in 2011, thanks to its outlet expansion plan.
The publicly listed retail company last year booked Rp4.11 trillion in revenues, rising 18.57% from Rp3.47 trillion in 2008.
Fetty Kwartati, Corporate Secretary of Mitra Adiperkasa, explained the company would focus on core businesses targeting middle class and would not prioritize expanding on super-luxurious products.
"We have been doing this strategy since last year. One research shows the number of medium- and high-income people in the next five years will double from the current 25 million people. This will be a huge potential," she said.
She added the company would also continue its strategy of reducing dollar and rupiah debts. At the moment, the company's foreign-denominated debts represent 20% of the total debts or Rp225 billion.
The US dollar-denominated debts, paid in installments once every six months, will be due by June 2012. The company will rely more on internal cash equities to finance its outlet expansion.
The US dollar-denominated debt cut, said Fetty, would minimize the factor of currency exchange rate spread in the financial statement.
A slump of 95% in currency exchange rate profit from Rp147.06 billion for period January-September 2009 to Rp6.76 billion for the same period this year has lowered the company's net profit despite its stronger revenues.
Mitra Adiperkasa's net profits in the first nine months of 2010 slumped 10.84% to Rp148.27 billion from Rp166.30 billion for the same period last year.
In the meantime, the company's revenues for January-September 2010 grew 12.06% to Rp3.39 trillion from Rp3.03 trillion for January-September 2009.
The company also found its business profit surging 52.39% to Rp301.94 billion from Rp198.14 billion.
Largest Specialty store represents the largest contribution of 59% to the company's total revenues, followed by department store (27%), food & beverage (10%), and others (4%).
Until September 2010, Mitra Adiperkasa had operated 798 outlets in 24 cities, with the retail area size reaching 423,919 square meters, an increase of 42,166 square meters.
By the year end, the company targets to open up 30 new stores, each of which will have a size of 6,000-7,000 square meters. Mitra Adiperkasa share yesterday rose by Rp100 or 3.92% to Rp2,650, creating a market cap of Rp4.4 trillion.
Disclosure: No position at the stock mentioned above.

Print This Article

No comments: