Mustika Ratu Loses Billions In 2020, Even Though Its Sales Increased By 4.32 Percent To Rp318.41 Billion

The founder of Mustika Ratu, Mooryati Soedibyo. (Photo: Doc. Antara)

JAKARTA - The cosmetics and herbal medicine company PT Mustika Ratu Tbk recorded an increase in net sales in 2020. However, the company owned by Mooryati Soedibyo actually suffered losses.

Quoted from Mustika Ratu's financial report published on the Indonesia Stock Exchange (IDX) page, Wednesday, June 3, the issuer coded MRAT posted a 4.32 percent increase in sales in 2020 to Rp318.41 billion compared to Rp305.22 billion in 2019.

In detail, the increase in almost all products, namely personal care, herbal medicine, and health drinks, and a significant increase in sales of health products.

In 2019 sales of health products only reached Rp601.89 million, while in 2020 it experienced a significant increase to Rp59.48 billion. Meanwhile, for cosmetic products, sales decreased from Rp101.71 billion to Rp41.33 billion in 2020.

Despite the increase in sales, the company actually suffered losses. The report recorded a net loss attributable to owners of the parent entity of Rp6.77 billion, in contrast to last year's net profit of Rp131.18 billion.

This was due to an increase in selling expenses, general and administrative expenses, and foreign exchange losses. Meanwhile, the share of other income and financial income decreased from the previous year.

Meanwhile, Mustika Ratu posted an increase in assets in 2020 to Rp559.80 billion from the previous Rp532.76 billion. The company's equity decreased from Rp368.64 billion to Rp342.42 billion.

As for liabilities, MRAT experienced a high increase of 32.45 percent to Rp217.38 billion. Meanwhile, in 2019, the company recorded a liability of Rp164.12 billion.

President Director of Mustika Ratu Bingar Egidius Situmorang said that the cause of the 32.45 percent increase in liabilities was an increase in the company's bank debt. The increase in bank loans was intended for additional working capital facilities and several liabilities directly related to the production and distribution activities of the company and its subsidiaries.

Bingar also explained that the company received the additional working capital facility in the third quarter of 2020.

"This additional facility is fully used to support the company in developing a growing personal care and health care business line and is shown by an increase in the company's sales," Bingar explained.