This Starbucks Cs Retailer's Profit Fell 83.63 Percent In The First Quarter Of 2020

Illustration. (Photo: Unsplash)

JAKARTA - The impact of the COVID-19 pandemic has also been felt by PT Mitra Adiperkasa Tbk (MAP). The company, which is known as a retailer for brands such as Starbucks, Zara, and SOGO, experienced a significant decrease in net income in the first quarter of 2020.

Even though it recorded an increase in net income of 0.64 percent from Rp4.68 trillion to Rp4.71 trillion, MAP's net profit dropped 83.63 percent in the first quarter of 2020. The company only earned a net profit of IDR27.3 billion, quite far from the achievements of the period same 2019, which is IDR166.68 billion.

VP Investor Relations & Coporate Communication MAP Ratih D. Gianda said that the decline in net income was also related to the implementation of the Statement of Financial Accounting Standards (PSAK) 73. For the application of the latest accounting standards, Ratih said the company's net profit had decreased by IDR 30 billion.

So it should be IDR57.3 billion. By applying a modified retrospective method, the company will not re-disclose its 2019 performance books, "Ratih said in a statement quoted on Wednesday, July 1.

Even though the financial performance has decreased, Ratih emphasized, the company is prioritizing speed and response in ensuring customers always have access to MAP's products and brands. The main focus of MAP at this time is to increase sales through omni channels, make savings through a number of cost efficiencies, and communicate intensively with brand owners and vendors.

"We have also invested in enhancing the company's online, mobile and social media capabilities," he explained.

In line with the government's recommendation to work from home, MAP has introduced DIGIMAP to meet the demands of its customers for computers, mobile phones and accessories.

Drive Sales via Online

Meanwhile, in terms of sales made by its outlets, Ratih said, MAP serves its customers through online delivery services, or delivery services in accordance with applicable standard operating procedures.

Several MAP outlets that serve online delivery include Starbucks, Pizza Marzano, Genki Sushi, PAUL Bakery, Burger King and Domino's Pizza.

Ratih also explained that MAP introduced the chat and buy program. This program allows the company's customers to shop through the Whatsapp application.

"We are also increasing partnerships with marketplaces and financial technology companies as well as working with digital influencers to increase sales and interaction with the public," said Ratih.

Going forward, MAP will also harness the strength of more than 3.1 million MAPCLUB members. Through all these initiatives, Ratih explained, MAP's digital sales increased by more than 100 percent until March 2020.