Matahari Feels Profit Pinch

Indonesian retailer Matahari, the country's second-largest retail group, has announced that its 2006 net profits fell by 28% to IDR160.50bn (US$17.4mn) due to higher financial charges and foreign exchange losses. Following the opening of 10 new hypermarkets and four new department stores in 2006, sales grew by 22.7% to IDR8.49 trillion (US$924.4mn). Sales through the department store division grew by 7.9% to IDR4.4 trillion (US$479.1mn) while sales from they hypermarket and supermarket joint division rose by an impressive 49.9% to IDR2.7 trillion (US$293.9mn). Meanwhile, operating profits rose by 30% to IDR 401.4bn (US$44mn) thanks to improved sales figures.

To read the full article, please choose one of the following options: