Matahari Putra
Prima, which owns the Hypermart retail chain, aims to continue its aggressive
expansion in eastern Indonesia this year to tap into faster growth in the
region.
Danny Kojongian, director of corporate communications at Matahari Putra
Prima, said on Thursday that the company was planning to open at least 17 new
Hypermart stores this year. Last year that number was 12, he said.
Hypermart accounts for 90 percent of MPP’s gross sales revenue of Rp
9.3 trillion ($1 billion), Danny added. MPP is owned by the Lippo Group, of
which the Jakarta Globe is a part.
Last year the grocery industry grew more in eastern islands of
Kalimantan, Sulawesi, Maluku and Papua than it did in Java and Sumatra, Danny
said.
“Eastern Indonesia is where the growth is,” Danny said, adding that 65
percent of MPP’s new stores would be located there.
The company had already opened four new outlets this year, he said, and
would inaugurate another three “this month alone.” By June or July, he added,
the company would have its first ever Hypermart in Papua.
Indonesia’s middle income group, Danny said, would keep driving demand,
meaning there would be room for big food retailers like Hypermart to grow. Only
11 percent of Indonesia’s food industry, he said, was represented by “modern
food retailers,” classified as supermarkets, hypermarkets and convenience
stores.
Thailand, meanwhile, had 35 percent modern food retailer penetration,
he said.
A hypermarket is a superstore combining a supermarket and a department
store. “It’s not only Hypermart that is tapping into this information and the
middle income group, but also other big retailers like Carrefour and Giant,”
Danny said.
Hendra Sidin, who until Thursday was MPP’s finance director, said the
company had set aside Rp 1 trillion this year for expansion, financed by the
company’s internal fund and unused bank loan facilities. He said the company has
loan facilities from six banks. Hendra is moving to another role within Lippo
Group, while it is unclear who will replace him at MPP.
MPP was expecting to increase its sales by 24 percent this year and was
targeting a 2012 net income of Rp 200 billion, he said.
Last year the company’s net income was Rp 105 billion. A comparison
with 2010 is difficult, because that year’s figure was dominated by a big
one-time gain from selling a stake in Matahari Department Store for about Rp
5.7 trillion. Excluding that, he said, gross profit in 2011 rose by 12 percent
to Rp 1.56 trillion from Rp 1.38 trillion. Sales in existing stores grew by 7.9
percent.
The chain currently holds 35 percent of the market share for
hypermarkets, Danny said.
Carrefour, which is controlled by Indonesian-based holding company CT
Corp, is the market leader with 47 percent. Giant, which is owned by Hero
Supermarket, has 18 percent.
The company’s annual shareholder meeting approved a Rp 32.3 billion
dividend, a 31 percent payout ratio.
MPP also owns the Foodmart supermarket chain and operates tens of
department stores and fashion and pharmacy outlets.
Francezka Nangoy
The Jakarta Globe
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