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MPMX’s Delivered Outstanding First Half Result 2018 by Posting Rp219 Billion Core Earnings and Rp4.2Trillion Net Profit from the Strategic Divestment


Key Highlights of First Half 2018 earnings result
 
Financial Summary 1H18
 
(In Millions) 1H18 1H17 % Growth
Net Revenue 7,553,348 7,033,928 7%
Gross Profit 610,676 605,089 1%
GP Margin 8.1% 8.6% N/A
Operating Expenses (463,596) (424,578) 9%
Operating Profit 310,337 235,959 32%
EBITDA 5,989,542 779,123 669%
Net Finance Cost (140,006) (105,066) 33%
Share of Profit of Associates 22,484 6,771 232%
Total Extraordinary Items 3,987804 124,116 N/A
Core Earnings* 218,777 198,918 10%
NPATMI 4,208,832 323,034 1203%
 
*Core Earnings is calculated as NPATMI excluding one-time and non-recurring profit and loss items
and Derivative MTM adjustment
 
PT Mitra Pinasthika Mustika Tbk (IDX Ticker: MPMX, the “Company”), Indonesia’s smart mobility company today announced its financial results for the first half ended 30th June  2018.
 
For the first half of 2018, the Company posted consolidated net profit (NPATMI) of Rp4.2 trillion and reported net revenue of Rp7.5 trillion, an increase of 7% compared to Rp7.0 trillion in the first half of 2017. The growth was mostly driven by the Company’s solid performance in the Distribution and Retail segment, where the nationwide motorcycle sales have seen encouraging sign of recovery in the first half of the year.
Meanwhile, the Company posted Rp219 billion Core Earnings (NPATMI excluding one-time and non-recurring profit and loss items and derivative MTM adjustment) or up 10% from the first half of 2017. The Distribution and Retail segment exhibited strong growth together with our businesses in Finance and Insurance segment. The Company’s cash position and leverage ratio is further strengthened due to the strategic divestment transaction.  The results are the indication of the Company’s focus on improving key financial levers while maintaining business growth.
 
As of 28th of June, FKT was officially de-consolidated from MPMX’s financial statement. The revenue of FKT will no longer be consolidated into the group’s overall numbers while the profit from the first half of 2018 will be recorded under “discontinued operation” in the P&L statement.
 
MPMX’s Group Chief Executive Officer Rudy Halim said, “We are pleased to see the overall earnings result of MPMX for the first half of the year. Aside from the successful divestment, the existing core businesses have performed well and our digital initiatives have shown encouraging sign of tractions. The divestment proceeds has strengthened the balance sheet and also allows us to strengthen and grow the existing businesses and operations of MPMX and invest in new faster growth areas of mobility that will ensure at least 10% YOY growth in the group’s EBITDA as a whole from 2019 onwards, so that it can deliver returns to shareholders in the form of superior dividend yield in a consistent manner.”
 
Subsidiaries Performance
 
In two-wheeler distribution and retail business, MPMX through its subsidiary MPMulia successfully retained its position as the market leader by recording 427,170 units of 2W in sales, representing a 5% increase from the same period last year. Due to the strong growth, MPMulia’s revenue saw a positive growth of 11% revenue to Rp6,392 billion and Net Profit 17% to Rp170 billion compared to the same period last year. 
On June 28th MPMX announced the successful completion of a strategic divestment of the 100% stake in its lubricant business subsidiary, PT Federal Karyatama (“FKT”) to Esso Petroleum Company Limited and ExxonMobil UK Limited (“ExxonMobil”) for a total consideration of US$436 million (Four Hundred Thirty Six Million US Dollar). During the first half of the year the lubricant business has recorded sales volume 27 million liters of lubricant, or 9% lower compared to the same period last year. This result was mainly driven by the less working days in June due to the holidays season and the fact that the business was de-consolidated from MPMX since June 28th. Revenue and Net Profit were dampened by 6% to Rp754 billion and 10% to Rp123 billion respectively.
 
MPMParts, the supplier and distributor of a range of parts and aftermarket services for two-wheel and four-wheel vehicles, keeps up the positive momentum by producing strong revenue growth of 5% to Rp149 billion compared to the same period last year. 
In terms of the car rental business, MPMX through MPMRent generated Rp609 billion of revenue during the first half of 2018, which represents a slight decline of 7% compared to the same period last year. The company will continue to raise its performance by focusing on operational efficiency. 
Outstanding result was delivered by MPMInsurance. The company was ranked top three General Insurance under the category Gross Premium between Rp250-1,000 billion by Infobank Award and top two General Insurance financial performance category for companies Rp250-500 billion equity by Media Asuransi. In addition, the company achieved a gross premium growth of 44%, to Rp306 billion in the first half of the year. The revenue grew by 30% to Rp110 billion. Lastly, MPMFinance experienced an increase in new booking to Rp3,583 billion or up 42% compared to the same period last year. The increase was driven by growth in car and motorcycle loans. The revenue grew by 25% to Rp737 billion.
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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 logistics 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.
 
For further information, please visit www.mpmgroup.co.id or contact:
 
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