MPMX Ends 9 Month of 2017 with Rp 363 Billion Earnings

JAKARTA, 31 October 2017 – PT Mitra Pinasthika Mustika Tbk (IDX Ticker: MPMX, “Company”), Indonesia’s smart mobility company, posted consolidated net profit after tax and minority interest (NPATMI) of Rp 363 billion in the first 9 months of 2017, approximately 25% increase from the same period last year. At the same time, the Company’s revenue decreased by 4% to Rp 11.9 trillion. Taken into consideration of the overall market sentiment, MPMX performed resiliently against the backdrop of the weak consumer purchasing power trend during 2017.
Regarding the Company’s performance during the third quarter of the year, Group CEO MPMX Rudy Halim conveys his outlook. “Looking back at MPM’s transformational journey so far, we’ve been building a strong foundation for our goal to optimize operational and capital efficiency, enhance profitability, and build long-term sustainable business. Moving along towards 2018, it is our task to keep up this positive momentum, add new sources of business growth, and continue with our mission in bringing valuable impacts to the society”.
MPMX’s accomplishments this year also include notable awards, such as Forbes Indonesia’s 50 Best of the Best CompaniesIndonesia’s Top 100 Most Valuable Brands 2017 by SWA magazine,  and Top 5 Best Companies at Investor Relations by FinanceAsia.
Subsidiaries Sustain Stability
In the two-wheeler distribution and retail business, MPMX through MPMulia and MPMotor has successfully recorded stable earnings at Rp 241 billion despite a slight 3% decline of revenue from Rp 10.7 trillion to Rp 10.4 trillion, compared to the same period last year. During the first 9 months of 2017, MPMulia sold 629,308 units of Honda motorcycles, or a 7% decrease from the same period last year while increasing its market share in the region.
As for the four-wheeler distribution and retail business, during the first 9 months of 2017, MPMX through MPMAuto sold 1,401 units of Nissan-Datsun cars or 66% lower than the same period last year, due to the scale-down of the operation and the limited product launch of Nissan and Datsun. As a way to strengthen its competitive capability, MPMAuto will continue to focus on operational efficiency and sales productivity as well as after-sales service quality.
In auto consumer parts segment, Federal Karyatama (FKT), which produces and distributes Federal Oil and Federal Mobil lubricants, sustained stable results by selling 45 million liters of lubricants during the first 9 months of 2017 while at the same time kicking-off the production from its new plant in Cilegon. Revenue decreased by 3% as compared to same period in 2016 while the company is continuously increasing its market share in two-wheel and four-wheel lubricants. FKT recently received awards as Best Company to work for in Asia from the HR Asia Awards 2017 while its Federal Oil product received Indonesia Best Brand Award (IBBA) from SWA magazine and the country’s leading research company MARS.
For the auto services segment, MPMRent generated Rp 28 billion of earnings during the first 9 months of 2017, which led to a significant growth of net profit after tax by 41% from the same period last year. The growth was attributed to higher gain from disposal of the used car sales, lower finance costs, and operational improvements. Meanwhile, MPMRent kept its revenue in a stable position at Rp 991 billion or 21% higher than the same period last year.
Within the financial service segment, MPMFinance was de-consolidated from MPMX’s financial statement as of May 2017. The revenue of MPMFinance will not be consolidated into the group’s overall number while the profit of the 40% ownership will be recorded under “share of profit of associates” in the P&L statement. MPMFinance posted 33% higher new bookings driven by the growth on new passenger car financing. The company’s revenue also increased by 10% to Rp 906 billion while maintaining healthy Non-Performing Loan (NPL) level of 2.8%, posting Rp 65 billion of net profit.
MPMX through MPMInsurance also recorded a gross premium growth of 27% compared to last year to Rp 348 billion. The company’s revenue grew by 45% to Rp 139 billion while its net profit increased 62% year on year to Rp 46 billion during the first 9 months of 2017.
About PT Mitra Pinasthika Mustika Tbk
MPM is a leading Indonesian company with a vision to positively impact lives through smart mobility and social integration. By collective power, we aim to deliver the most relevant products and services to the people in our ecosystems through innovation. Our businesses offer a broad spectrum of mobility solutions, from retailing and distributing motorcycles and cars, after-market parts and services, transportation and logistic services, and financial services. MPM is Indonesia’s mobility ecosystem and we will continue to create smarter mobility solutions to help Indonesia integrate better than ever before.
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