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ajor cosmetics producer PT Martina Berto (MBTO), part of the Martha Tilaar Group, expects that the rising buying power of the nation’s growing middle-class will help the company achieve its target of a 15 percent increase in total revenue and net profits this year.

The publicly listed company relies on middle-class consumers as most of its products are targeted at that demographic, according to Martina Berto president director Bryan Tilaar.

“Our business is in the consumer goods sector, which is quite an appealing sector right now, considering Indonesia’s strong domestic consumption. The rise of the middle class will have a positive impact on our sales,” he said during a telephone interview on Friday.

The company’s growth is predicted to be higher than that of the overall cosmetic industry, which is estimated to rise 7 percent in 2013, Bryan added.

Martina Berto manufactures color cosmetics, skin care, body care, hair care and herbal products under several brands, such as Sariayu, Caring, Biokos, PAC, Rudy Hadisuwarno and Dewi Sri Spa.

It is expected that their color cosmetic and skin care products will be major contributors to the projected growth in 2013.

According to Bryan, all of the brands have introduced new product variants, including Sariayu with its annual color trends. In 2013, Sariayu is opting to promote the colors of Central Java’s northern coastal region.

In total, this year’s new variants will reach about 100 stock keeping units (SKUs) and will add to the 1,000 SKUs which Martina Berto currently has.

To support the growth, the company will open between three and five new outlets in Indonesia. It also plans to establish its flagship store in Malaysia in 2013.

At the moment, Martina Berto operates around 16,000 outlets across the country and two retail outlets under the Martha Tilaar brand in Singapore, and partners with a number of overseas suppliers.

“We mainly export herbal products. Foreign markets only contribute 2 percent or 3 percent to our total sales right now. We hope to increase the figure to 5 percent by 2016,” Bryan said.

It expects subsidiary PT Cedefindo to play a bigger role in reaching this year’s target. Besides cosmetics for Martina Berto, Cedefindo manufactures products for other brands, such as Kosé, Sara Lee, Oriflame, Chicco and Rohto. Third-party products account for between 15 percent and 20 percent of total sales.

Meanwhile, the company is also looking to complete the construction of its new herbal factory in Cikarang, Bekasi, West Java, between September and October. It will have a production capacity of around 280 tons and 290 tons per year. Currently Martina Berto produces its herbal products at a rented factory in Bogor, West Java. It will cease production in Bogor following the completion of the Cikarang plant.

Bryan said that the company’s 2012 unaudited financial report showed Martina Berto managed to reach 98 percent of its revenue and net profits targets, which were set at Rp 713.21 billion (US$73.96 million) and Rp 46.92 billion, respectively.

It recorded that its total assets stood at Rp 583.99 billion as of September 2012. It has liabilities of
Rp 158 billion, while its equity amounts to Rp 425.99 billion. Martina Berto’s shares closed at Rp 415 on Friday, up 5.1 percent from Wednesday.