Falling sales and increasing sales expenses triggered a sharp drop in profits for PT Matahari Putra Prima Tbk (Hypermart). The rise of online shopping and intense competition from the proliferation of minimarkets are among the reasons why the retail company, traded under the code MPPA, suffered losses exceeding Rp 1 trillion.
According to the published financial report, MPPA's sales for the 2017 fiscal year fell by 7.14% to Rp 12.56 trillion compared to the previous year. This figure is also the lowest in the last four years. As a result, the retail company with the Hypermart brand recorded a loss of Rp 1.2 trillion, compared to a profit of Rp 38.48 billion in the previous year.
Amidst the decline in profits, MPPA's expenses swelled. Cost of goods sold increased by 2.82% to Rp 11.56 trillion from the previous year, while selling expenses surged by 67.7% to Rp 489.6 billion. General and administrative expenses also increased by 4.69% to Rp 2.06 trillion, and financial expenses rose by 29.78% to Rp 118 billion from the previous year.
"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy,
but please note that automated translations may contain errors or slight inconsistencies."