MAPI Q1 2022 REVENUES JUMP 31%: GROWTH ACROSS ALL SEGMENTS

PT Mitra Adiperkasa Tbk (MAPI), the leading multi-channel branded commerce retailer in Indonesia for the full quarter, MAPI saw net revenue up by 30.6% to Rp5.6 trillion from Rp4.3 trillion, GPM improved to 42.9% from 41.7% in the previous year. Operating profit surged 160.3% to Rp488.4 billion from Rp187.6 billion.

EBITDA grew 41.1% from Rp727 billion to Rp1 trillion; while net profit jumped to Rp577.2 billion from Rp18.5 billion. The net profit in Q1’22 included the results of partial divestment of Burger King as we finalized the transaction in the quarter.

Sales momentum was particularly strong in Sports, Digital Gadgets, and F&B, which comprised the majority of the 84 new stores opened for the period.

Specifically, MAPI announced its first Foot Locker Power store in Senayan City, a new rendition of its Digiplus multi brand electronics store, and an exclusive coffee experience center at Starbucks Dewata, Bali.

Commenting on the results, Ratih D. Gianda, VP Investor Relations, Corporate Communications and Sustainability of MAP Group advised, “Our Q1 sales and profit growth reflects our belief in MAPI’s unique business model that effectively combines multi-channel retailing across physical stores, wholly owned digital channels, and third party market places.”

Ratih added, “Our results continue to be enhanced by our MAPCLUB which now has over 5 million members. It connects MAPI with our most loyal shoppers, builds the vital engagement for loyalty and long-term sales across all channels, and provides our customers the most convenient options of when and where to buy.”

The strong gross margin gains in Q1 were driven by higher full price sales via ever fine tuning of the Group’s merchandise planning and data analytics. This allowed improved targeting of its best customers and better inventory management control through disciplined supply chain optimization. The increased focus on business process resulted in an inventory level reduction to 106 days versus 125 days as per end of 2021, and an improvement of aging products of 31% from 43% by end of last year.

Digital performance in Q1 grew 32% reaching 10.3% of turnover. This is on top of an exceptionally high growth of 168% from the same period last year when eCommerce revenues overperformed in light of multiple store closures due to the Covid-19 pandemic. Particularly strong results were seen from Zara, Skechers, Digimap, Planet Sports, and Mango.

“We were extremely pleased to see significant online growth in Q1 2022 despite the exceptionally high sales momentum in 2021 when we suffered frequent physical store closures. We continue to invest heavily into our direct-to-consumer business and overall digital transformation, and it’s now become a significant part of our overall top and bottom-line contribution.” Ratih D. Gianda, VP Investor Relations, Corporate Communications and Sustainability of MAP Group

Looking forward, Ratih reiterated that while business momentum remained positive, the heightened uncertainty of supply chain challenges, inflation, and slower than planned recovery of Covid-19 related restrictions in other ASEAN markets, meant that MAPI would be prudent in its short-term forecasts for growth.

However, MAPI’s long-term strategy for Growth remained intact. Namely;

1. Expansion of its direct consumer engagement via MAPCLUB.

2. Continued investment in new businesses, brands, and ASEAN market expansion under its “Brand Commerce” plan.

Source: MAPIndonesia

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