Retailer PT Sumber Alfaria Trijaya, the operator of Alfamart convenience stores, has announced a 50 percent drop in its 2017 net profit, compared to the figure in 2016.
PT Sumber Alfaria Trijaya CEO Hans Prawira said 2017 was a tough year for the retail industry, and the decline in sales performance also affected other retailers.
“Last year was a relatively tough year, and I think it did not only affect us. We could not achieve our target, while operation costs increased,” said Hans as reported by kompas.com on Tuesday.
According to the company financial report to the Indonesia Stock Exchange (IDX), Alfamart booked Rp 300.27 billion (US$21.82 million) in profit in 2017 from Rp 601.58 billion in 2016.
Meanwhile, its revenue increased to Rp 61.4 trillion, last year from Rp 56.1 trillion in 2016.
Hans said employees’ salaries covered nearly 50 percent of total company spending due to the increase of minimum wages every year.
“Spending on salaries increased, while the other costs were already fixed. We also could not achieve our sales expectation. It made our profit drop significantly from Rp 600 billion to Rp 300 billion,” Hans added.