PT Martina Berto Tbk to Target 25 Percent Income Growth, Optimistic in the Midst of Global Uncertainty

Today, PT Martina Berto Tbk held an Annual General Meeting of Shareholders (GMS) to report on the financial year ending on 31 December 2023. The annual financial report was well received and obtain legitimation and approval at the GMS.

In this annual meeting, the Company's Board of Directors reported the performance of PT Martina Berto Tbk (MBTO) in 2023 which succeeded in recording an increase in financial performance by reducing the current year's net loss from IDR 42.43 billion in 2022 to IDR 31.93 billion in 2023. Meanwhile in gross profit, the Company recorded 75.21% of the target of IDR 145.79 billion. In net sales, the Company recorded an increase of 16.20% to IDR 418.53 billion from IDR 360.18 billion in 2022. Meanwhile for gross profit, the company managed to record a gross profit of IDR 145.79 billion, an increase of 9.51% compared to the gross profit in 2022 of IDR 133.13 billion. The increase in gross profit in 2023 is mainly due to the increase in net sales being much greater than the increase in cost of goods sold.

In 2024, Bryan Tilaar, the President Director of PT Martina Berto Tbk said that the Company is targeting revenue growth of 25% with a value of approximately IDR 525 billion. The company is optimistic that it can achieve this target by reducing COGS/Cost of Goods Sold from 65.16% in 2023 to 56.82% in 2024, increasing the effectiveness of marketing costs from 18.77% in 2023 to 19% so that it is expected to generate profits business/operating profit from a loss of IDR 2.5 billion in 2023 to a profit of IDR 45.8 billion in 2024 to be able to achieve Earnings Before Interest Depreciation (EBITDA) from IDR 14 billion in 2023 to IDR 59 billion in 2024 with a profit after tax/profit after tax is from minus/loss IDR 31 billion in 2023 to profit after tax in 2024, namely IDR 24 billion, return on assets in 2023 from minus 4.74%, to 3.39% in 2024 , return on equity from minus 8.65% in 2023 to 6.69%, and supported by the effectiveness of employee performance/return on capital employed from minus 0.61 in 2023 to 11.54%.

To achieve performance figures that are much better than in 2023, according to Bryan, the Company will implement strategies including adapting to consumer behavior, rejuvenating products, investing in digital media and increasing online sales, more even distribution, more accurate forecasts, innovation new products, and improved profits. Apart from that, the Company also sharpened its marketing and multi-distributor strategy, namely with Tiga Raksa and Penta Valent, as well as PT Parit Padang Global. MBTO is also trying to maintain and strengthen sales through PT Tara Parama Semesta (TPS) which manages Martha Tilaar Shop (MTS) outlets and online sales, as well as the PT Cedefindo business unit (a subsidiary of MBTO) which operates in the contract manufacturing sector.

MTS, through an omnichannel mechanism, functions as a customer experience center for consumers and targets the upper middle class market with more premium product variants than independent outlets. To date, the Company has 9 MTS outlets and 4 shop-in-shops spread across major cities in Indonesia. Meanwhile PT Cedefindo focuses on toll manufacturing with a resource sharing mechanism. Experienced since 1981, PT Cedefindo has produced approximately 80% of indie brands circulating in the Indonesian market by collaborating with influencers, artists, public figures, students and young entrepreneurs. Not only indie brands, several national and multinational companies also entrust the production of their products to PT Cedefindo. It is hoped that the improved performance of PT Cedefindo and PT Tara Parama Semesta will help the performance of their parent company, PT Martina Berto Tbk.