Hardly Defeat 2Q17’s Growth Figures
LPPF’s revenue and net profit in 2Q18 nudged up by 1.8% y-y to IDR3.95 trillion and 0.4% y-y to IDR1.10 trillion, respectively. However, the retail and consignment sales persistently posted its highest figures of IDR2.55 trillion and IDR4.44 trillion, respectively. Furthermore, it succeeded to increase its 2Q18’s Matahari.com sales transaction of 32% q-q. We oversee that the small growth figures of 2Q18’s revenue were mainly attributable to 2Q16 and 2Q17’s high base revenues growth of 44.1% y-y and 17.1% y-y.

Thanks to its aggressive promotion strategies through TV and digital media that it enjoyed the buoyant revenue. On the other hand, although products advertised posted the double-digit growth, the hike of 37.2% y-y in 2Q18’s marketing cost inevitably whittled away the bottom line margin. Nevertheless, in ahead years, citing from 2Q18’s earnings call transcripts, the management articulated that it likely cuts back 2H18’s marketing activities.

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