D

espite the challenging economic situation, publicly listed giants Mitra Adi Perkasa (MAP) and Unilever Indonesia reaped positive results in the first nine months, as shown by their latest financial reports.

Mitra Adi Perkasa — stocks of which are traded on the Indonesia Stock Exchange (IDX) under the code MAPI — saw its net profit jump nearly 4.5 times on an annual basis to Rp 120.29 billion (US$9.23 million) in the January to September period.

The result was a stark contrast to what it reported during the same period in 2015, when its profit fell nearly 80 percent year-on-year (yoy).

The latest result was achieved amid a sluggish domestic economy, also reflected by MAP’s top line, which surged by a single digit only in the first nine months, a similar rate to what it recorded from January to September 2015.

“What happened wasn’t an improvement in the top line,” MAP corporate secretary Fetty Kwartati said by phone on Thursday, referring to the firm’s revenues.

“It is because we implemented internal improvement initiatives so that our profits improved much more [than revenues].”

The financial report shows the company managed to put the brakes on the growth of its costs and expenses, leading to the significant profit jump.

It suffered from “less severe” currency depreciation as well this year with foreign exchange losses of Rp 22.04 billion, as compared to losses of Rp 52.3 billion a year ago.

MAP holds the licenses of many international brands, exposing it to international trade and currency fluctuations. The brands under its belt include Starbucks, Zara, Massimo Dutti and Pull & Bear.

As of September, the firm operated 1,917 retail stores in 68 cities nationwide. “We remain optimistic because the fourth quarter is usually the peak for businesses like ours owing to Christmas and year-end holidays,” Fetty added.

It aims for 10 percent revenue growth by year-end and to maintain its current gross and net profit margins at 46 percent and 1.2 percent, respectively.

Daewoo Securities Indonesia believes MAP’s strong performance is supported by a stronger rupiah, given most of its cost of sales are in the US dollar.

“In addition, MAPI could muffle its operating expenses in the first nine months,” Daewoo Securities Indonesia research head Taye Shim said.

Some of the company’s operating expenses, such as water and electricity costs, packing materials, telephone bills, stationery, professional fees, etc. dropped in the period, causing the margin of its earnings before interest and taxes to expand by 300 basis points yoy, he said

Meanwhile, consumer goods Unilever — stocks of which are traded under the UNVR code — reported annual profit growth of 13.6 percent in the January to September period, higher than the 3.3 percent growth booked one year ago.

By the end of September, Unilever’s profits stood at Rp 4.75 billion.

Its sales, on the other hand, surged 9.2 percent yoy in the first nine months of the year from 5.6 percent yoy in the same period in 2015.

Unilever’s net profit has exceeded expectation, Mandiri Sekuritas analysts Adrian Joezer and Lakshmi Rowter wrote in a research note, adding that Unilever’s performance was helped by lower operating costs as well, notably advertising spending.

“The 1.7 percent average sales price hike in February and August definitely helped this positive trend along with the aggressive products launching this year […] and the strength in IDR [ Indonesian rupiah],” they wrote.