REG - DFI Retail Group Jardine Matheson Hdg - PT HERO SUPERMARKET TBK FULL YEAR 2023 RESULTS

DFI Retail groupAnnouncement

13/03/2024 09:00

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RNS Number : 6839G  DFI Retail Group Holdings Ltd  13 March 2024

 Announcement
 13th March 2024

 

 

PT HERO SUPERMARKET TBK

FULL YEAR 2023 RESULTS

 

 

 

The following announcement was issued today by the Company's 89.3%-owned
subsidiary, PT Hero Supermarket Tbk.

 

 

 

For further information, please contact:

 

 DFI Retail Group Management Services Limited
 Diky Risbianto                                (62-21) 8378 8388

 

 

South Tangerang, 13(th) March 2024

 
PT HERO SUPERMARKET TBK
FULL YEAR 2023 RESULTS

 

Highlights

·    Net Revenue up 15%

·    Overall loss due to reduced IKEA profit and lower gains from property
divestments

·    Strong Health & Beauty performance

·    IKEA adversely affected by reduced home furniture demand

·    Positive operating cash flow from improved working capital management

 

Results

                                            Audited Full Year

                                            2023             2022                  Change
                                            Rp billion       Rp billion            %
 Net Revenue                                5,098            4,437                 15
 Gross Profit                               2,018            1,855                 9
 Loss from continuing operations            (421)            (308)                 n.m.
 Reported (loss) / profit                   (132)            59                    n.m.
                                            Rp               Rp                    %
 Loss per share from continuing operations  (101)            (74)                  n.m.
 Reported (loss) / profit per share         (32)             14                    n.m.

 

PRESIDENT DIRECTOR'S STATEMENT

 

Introduction

The Company's sales and gross profit increased in 2023 compared to the prior
year. Guardian Health and Beauty reported strong results for the full year,
and Hero Supermarket saw improved like-for-like sales in the second half of
the year.  Nevertheless, IKEA's performance was adversely affected due to
slow recovery in the home furnishing market and a downturn in the residential
property sector.

 

Company Performance

The Company's net revenue for the full year was Rp 5,098 billion, 15% higher
than the prior year.  The reported loss for the year amounted to Rp 132
billion, compared to Rp 59 billion profit in the prior year.  The change in
profit was attributable to reduced IKEA profit and lower gains from property
divestments, partly offset by improved Guardian Health and Beauty profit.

 

Guardian Health and Beauty reported double-digit like-for-like sale growth,
underpinned by traffic recovery for stores in premium malls and tourist
locations.  Profit improved significantly compared to the prior year.
 Guardian continues to strengthen its value proposition by optimising its
range and developing its omnichannel presence, to increase customer
accessibility.

 

IKEA's net revenue increased due to the impact of the annualisation of new
store openings in the prior year.  Like-for-like sales, however, declined due
to reduced home renovation and furniture demand caused by weak property market
activity.  Third-quarter like-for-like sales improved, but performance in the
fourth quarter was impacted by reduced store visit numbers. Profit for the
year reduced as a result of lower like-for-like sales and gross margins.
Despite the challenging trading conditions, IKEA management is executing a
number of initiatives to improve financial performance, including space
optimisation for some larger stores, cost control and inventory management
initiatives.

 

Hero Supermarket's sales and profit continued to be impacted by lower demand
for key consumer staples.  Nevertheless, like-for-like sales momentum
improved in the second half of the year.  Hero Supermarket continued to
innovate by developing new store formats and implementing robust cost controls
to improve store productivity.

 

Business Update

In 2023, the Company divested three non-core properties, which enhanced the
Company's financial position.  The Company subsequently sold two additional
non-core properties in January 2024.

 

People

We extend our heartfelt gratitude and appreciation to our dedicated team
members for their commitments and exceptional customer service.

 

Prospects

The Company expects ongoing variability in demand patterns across its business
units. We anticipate the positive momentum in the Health and Beauty segment to
persist.  There remains uncertainty, however, in the recovery of Home
Furnishing business and the Company is progressing initiatives to improve
store sales productivity and cost efficiency in the Home Furnishing
business.  The Company remains well-positioned to achieve sustainable growth
in the medium to long-term.

 

Hadrianus Wahyu Trikusumo

President Director

13(th) March 2024

 

For further information contact:

Hadrianus Wahyu Trikusumo, President Director

PT Hero Supermarket Tbk

Tel: +62-21-8378 8388

E-mail: extcomm@hero.co.id (mailto:extcomm@hero.co.id)

 

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