Hypermart Manager Owned By Conglomerate Mochtar Riady Still Losing IDR 158.6 Billion Despite Raising Sales Of IDR 3.71 Trillion, Why?

JAKARTA - The hypermart network manager of the Lippo Group owned by conglomerate Mochtar Riady, PT Matahari Putra Prima Tbk (MPPA) posted an increase in sales during the first half of 2022. However, the increase did not affect the company's loss position in the first six months of this year.

In MPPA's financial report, quoted on Friday, August 5, MPPA's net loss reached Rp. 158.60 billion in the first semester of 2022. This is 73.33 percent greater than the loss in the first semester of 2021, which was worth Rp. 91.50 billion.

The loss was recorded by Matahari Putra Prima even though net sales increased to Rp3.71 trillion, 4.80 percent higher than the same period the previous year of Rp3.54 trillion.

MPPA sales were mainly supported by the retail or Hypermart retail segment which contributed Rp3.47 trillion, up 6.69 percent compared to Rp3.25 trillion in the first semester of 2021. Meanwhile, wholesale or wholesale sales actually fell 16.12 percent on an annual basis to become Rp245.96 billion from Rp293.27 billion.

The increase in sales was followed by an increase in cost of goods sold in the first semester of 2022. MPPA reported that expenses for cost of goods sold during January-June 2022 reached Rp3.04 trillion, up 4.28 percent yoy from the previous Rp.2.91 trillion.

The increase in cost of goods sold was due to an increase in purchases of inventories in the first semester of 2021. Until the end of June 2022, MPPA's total assets decreased 15.29 percent to Rp3.93 trillion compared to the position on December 31, 2021 of Rp4.65 trillion.

The decrease in assets was mainly due to a decrease in cash and cash equivalents by Rp547.98 billion to Rp204.60 billion as of June 30, 2022. In addition, total liabilities decreased by 13.59 percent to Rp3.51 trillion from the position at the end of 2021 which amounted to Rp4.06 trillion.

The decrease in liabilities was mainly due to a decrease in short-term debt by Rp305 billion to Rp245 billion as of June 30, 2022.

Until the end of 2022, Matahari Putra Prima operates Hypermart, Foodmart, Hyfresh and Boston Health & Beauty stores in 199 locations in Jakarta and other cities in Indonesia, respectively. This number of locations is reduced compared to December 31, 2021 when MPPA operates Hypermart, Foodmart, Smart Club, Hyfresh and Boston Health & Beauty in 200 locations.