JAKARTA (Yosefardi) – Retailer PT Sumber Alfaria Trijaya Tbk (AMRT) decided to cancel its plan to expand into Vietnam due to red tape constraint.
Vietnam government does not allow a foreign retailer to have majority ownership in the joint venture. A foreign retailer is also prohibitted to take away the profits from Vietnam.
Then, AMRT opts to focus in other Southeast Asia countries such as Filipina. AMRT has operate 7 outlets in Filipina and plans to add to 20 outlets.
AMRT continues its aggresive expansion of oulets. In the first half of 2014, the company’s total assets grew 23.1%, bigger than the growth of sales (21%) year-on-year.
The company managed to report 20.4% growth in operating profit, but operating profit margin was flat at 1.7%. Net profit margin, meanwhile, collapsed 30% to 0.6% only.
AMRT booked net profit of Rp122 billion in the period, declined 18.6% from Rp150 billion in the first half of 2013. While revenues was Rp19.29 trillion, compared to previous Rp15.95 trillion.