Bata Q1 sales up 17 percent

Thu, 05/29/2008 10:32 AM  |  Business

JAKARTA: Indonesia's oldest shoemaker, PT Sepatu Bata, saw its first quarter sales increase 17 percent to Rp 105 billion compared to in the same period last year, and its net profit grow 30 percent to Rp 3 billion.

"To maintain sales growth, we will try to maintain prices, although the inflation rate is likely to increase much further," director Ibnu Baskoro said.

He said the company would instead focus on increasing efficiency and launching new affordable products.

"If we raise prices while people's purchasing power drops, we will not be able to sell well," he said after a press conference in which the company announced its 2007 financial performance.

Last year, 90 percent of the company's 11 million pairs of shoes were sold by retailers, while export and dealer sales each accounted for five percent.

The company recently generated Rp 216 billion through asset sales, Rp 70 billion of which is to be allocated for operation and sales improvements.

"The management will decide how to use it in line with the interests of all stakeholders, including shareholders," Ibnu said. -- JP

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