JAKARTA. The net profit of PT Matahari Department Store Tbk (LPPF), a retail company owned by the Lippo Group, fell by 51.2% throughout 2023 due to high operating expenses.

According to idnfinancials.com data, LPPF only recorded a net profit of IDR 675.36 billion in the 2023 fiscal year. Meanwhile, in the previous year, the company was able to print a net profit of up to IDR1.38 trillion.

Whereas LPPF's revenue experienced a slight increase of 1.3% yoy in 2023, to IDR6.53 trillion. In the previous year, the company's revenue was recorded at IDR6.45 trillion.

The decline in LPPF's net profit in 2023 was suspected to be due to increased operating expenses. The company's cost of revenue increased 8.4% yoy to IDR2.23 trillion in 2023, while its operating expenses also increased 10.7% yoy to IDR3.11 trillion.

On the other hand, LPPF's financial expenses also rose 60.5% yoy to IDR350.9 billion in 2023. The company also booked other losses, due to the disposal of fixed assets and depreciation of closed stores, amounting to IDR28.37 billion.

As of the end of 2023, LPPF's total assets were recorded at IDR5.88 trillion. Meanwhile, its total equity was recorded at IDR5.88 trillion. (KR/LM)