Bisnis.com, JAKARTA – PT Mustika Ratu Tbk. seeks to achieve double-digit performance growth targets on 2020, even though sales until the third quarter of 2019 fell 6.79% on an annual basis.
President Director of Mustika Ratu, Bingar Egidius Situmorang believes the company can achieve 11% of sales growth on next year. This belief in line with the company’s efforts to expand the export market, develop new products, and improve distribution channels.
This cosmetics company will target the countries of Indochina, Middle East and Africa next year. Hopefully, the addition of the export market can enlarge the contribution of export sales, which are currently still 5%, to be greater.
In addition, the issuer coded MRAT shares, will develop new products in the herbal medicine category. The company also began targeting the Muslim and millennial markets by cooperating with Wirda Mansyur.
The cosmetic segment contributed 88.70% to sales before returns and sales discounts per quarter III / 2019, followed by the herbal segment 8.16%, health drinks 0.31%, and others 2.83%.
Improving the distribution channels is also carried out by activating outlets, improving displays in general trade and modern trade, remapping the distribution of sales coverage, strengthening digital channels.
With some of the strategies, Egi said that the company is believed to achieve double-digit growth amid slowing consumption.
“On industry, the growth of the cosmetics industry has reached double digits. It means that the opportunity is still large,” he said after a public expose on Thursday (12/12/2019).
Egi is optimistic that sales until the end of the year can record growth, even though the company has not been able to deliver projections until the end of the year.
For information, per quarter III / 2019, the company posted sales of Rp222.38 billion, down 6.79% on an annual basis. The level of household consumption which declined in the third quarter had an impact on the company’s performance.
Conversely, net profit rose 192.41% annually to Rp2.31 billion during the 9-month period this year. Product mix strategy seems to have an impact on greater profit margins.
Furthermore, he is currently in the process of finalizing the preparation of capital expenditure next year. Including, determining the allocation of advertising and promotion costs in line with the expansion of the export market.
“We are increasing exports to many countries. Previously we have grown up in Malaysia, Canada, US. We are working to enter such countries as China, Somalia, Oman,” he said.