INDONESIA: Matahari Swings To Profit In Q2

Matahari Putra Prima has reported a profit for its fiscal second quarter, the first such after two straight quarters of losses.

For the three months to end-June, net profit was up 9% to 102bn rupiah, while sales grew by 6.5% to 3.7trn rupiah.  The results meant the group’s first-half sales were up 2.15 to 7trn rupiah, while losses amounted to 20.7bn rupiah.

Matahari, one of Indonesia’s largest retailers, was helped by strong demand leading up to Eid-up-Fitr holiday.  It said growth was driven in the quarter by Lebaran and stores that were converted to the new G7 concept.

CEO Noel Trinder added: “Aggressive inventory actions that negatively impacted earnings since second half 2015 have now finished, positioning Matahari well for future growth. We believe the resumption of growth which began in the second quarter will carry into the second half”.

Matahari currently operates 297 outlets under the Hypermart, Foodmart Primo, Fresh, FMX, Boston, and SmartClub banners.