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Martina Berto targets $39m in sales amid low demand

Martina Berto's sales fell 38.2 percent year-on-year (yoy) to Rp 87.06 billion in the first quarter of this year because of a pandemic-induced decline in consumption.

Riska Rahman (The Jakarta Post)
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Jakarta
Fri, July 10, 2020

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ublicly listed cosmetics firm PT Martina Berto is targeting Rp 564 billion (US$39.09 million) in sales this year, 4.92 percent higher than last year’s figure, despite slumping demand for cosmetics.

President director Bryan David Emil said on Monday that the company was optimistic it would achieve the target as it would focus on producing skin care, personal care, herbal and hygiene-related products this year to offset the low demand for makeup.

“We won’t be focusing on makeup products because people’s faces will be covered by masks,” he said during a virtual public showcase. “That’s why we’ll focus on producing hygiene products, soaps, shampoos and hand sanitizers instead this year.”

The company, part of cosmetics giant Martha Tilaar Group, has shifted its business focus to healthcare goods since the height of the pandemic by producing in-demand products such as hand sanitizers, hand gel, disinfectant and bottled herbal drinks.

The company's sales fell 38.2 percent year-on-year (yoy) to Rp 87.06 billion in the first quarter of this year because of a pandemic-induced decline in consumption. Cosmetics sales, which previously made up more than 82 percent of Martina Berto’s total sales, fell by almost 35 percent yoy during the period.

“We hope the easing PSBB [large-scale social restrictions] policy will boost people’s consumption by December,” Bryan said.

To achieve its sales target, the company plans to launch a new herbal product, among others, in the second half of this year. However, Bryan declined to go into detail as the products were still under development.

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