Starbucks Is the Success Story of MAP Boga Adiperkasa
Indonesian food and beverage company MAP Boga Adiperkasa, part of the MAPI Group, has big expansion plans in store for 2018, especially for Starbucks branches which it operates in Indonesia through a franchise agreement (through subsidiary Sari Coffee Indonesia). Besides Starbucks, the company - through other subsidiaries - is the operator of several iconic brands: Pizza Express, Krispy Kreme, Cold Stone Creamery, and Godiva.
In 2018 MAP Boga Adiperkasa wants to add 70 new stores to its network in Indonesia. Out of this total, 60 are targeted to be Starbucks outlets. Clearly, Starbucks is the company's biggest success story. This was confirmed by MAP Boga Adiperkasa Director Fetty Kwartati. She said the company plans to add branches for several brands, including Starbucks, Genki Sushi, and Pizza Marzano.
However, most attention and funds will go to expansion of its Starbucks network across Indonesia. This makes sense as most of the company's earnings - nearly 72 percent of total earnings - derive from the drinks segment. In the first nine months of 2017, sales of drinks reached IDR 976.64 billion (approx. USD $73 million).
Each year MAP Boga Adiperkasa targets to open 60 new Starbucks branches in Indonesia with a main focus on the Greater Jakarta region which includes Bogor, Depok, Tangerang, and Bekasi. The majority of the company's income is generated in the Greater Jakarta region. Per October 2017 MAP Boga Adiperkasa owned a total of 376 stores across the bigger cities of Indonesia.
MAP Boga Adiperkasa is for 79.1 percent owned by Mitra Adiperkasa and therefore both companies' business expansion is heavily intertwined. In fact, the capital expenditure budget for MAP Boga Adiperkasa partly originates from its parent company (the exact figure was not given).
In 2018 MAP Boga Adiperkasa targets to see a 20 percent (y/y) growth in revenue supported by its expanding network of stores. Per September 2017 the company's sales had risen 15.3 percent (y/y) to IDR 1.36 trillion (approx. USD $101.5 million). Net profit - over the same period - fell, however, by 34.2 percent (y/y) amid rising administration, sales and general costs.
Stock Quote MAP Boga Adiperkasa - MAPB: