REG - Dairy Farm Intnl Jardine Matheson Hdg - PT Hero Supermarket Tbk Three Months 2022 Results

Jardine Matheson HoldingsAnnouncement

29/04/2022 10:45

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RNS Number : 8800J  Dairy Farm International Hldgs Ltd  29 April 2022

 Announcement

 29th April 2022

 

 

PT HERO SUPERMARKET TBK

THREE MONTHS 2022 RESULTS

 

 

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

 

 

For further information, please contact:

 

 Dairy Farm Management Services Limited
 Diky Risbianto                          (62-21) 8378 8388

 

 

South Tangerang, 29(th) April 2022

 

PT HERO SUPERMARKET TBK
THREE MONTHS 2022 RESULTS

 

Highlights

 

•   Underlying like-for-like sales recovery trend across business units

•   Underlying losses excluding lease liability provision releases
narrowed compared to prior

      comparable period

•   PT Hero is well-positioned to benefit when external conditions
normalise

 

Results

                          (Unaudited)

                        THREE MONTHS
                        2022        2021        Change
                        Rp billion  Rp billion  %
 Net Revenue            1,001       1,763       -43.3
 Gross Profit           414          494        -16.2
 Loss for the period    (67)        (2)         n.m.
                        Rp          Rp          %
 Loss per share         (16.1)      (0.4)       n.m

 

PRESIDENT DIRECTOR'S STATEMENT

 

Introduction

 

The Company is broadly experiencing a trend of underlying like-for-like sales
recovery across its business units relative to sales performance in 2021.
Whilst the Company continued to face challenges in the first quarter of 2022
due to the third COVID-19 wave and varying implementations of PPKM
(Enforcement of Limitation on Community Activities), trading improved from the
middle of March as restrictions were eased.

 

Financial Performance

 

The Company's reported revenues for the quarter were impacted by the strategic
pivot away from the Giant brand, which was executed in the second half of
2021.  The Company reported a net loss of Rp 67 billion for the first three
months of 2022.  After excluding reversal of lease liability provisions
booked in both periods, the Company's underlying losses narrowed by Rp 105
billion in the quarter relative to the prior comparable period.

 

IKEA's revenues in the quarter increased primarily due to annualisation impact
of new store openings in the prior year.  However, like-for-like sales
continued to be impacted by COVID-19 restrictions on operating capacity and
trading hours.  Global supply chain constraints also impacted stock
availability.  These factors impacted divisional profitability, partially
offset by stringent cost control.  IKEA, however, remains balanced in its
approach and continues to invest in Indonesia to drive long-term sustainable
growth.  In April, IKEA opened its first city store inside a shopping mall at
Mall Taman Anggrek, offering greater accessibility for customers living in the
centre of Jakarta and its surrounding areas.

 

Guardian Health and Beauty reported ongoing improvement in like-for-like sales
relative to the fourth quarter of 2021.  Encouragingly, stores in premium
malls and tourist locations reported good performance driven by strong growth
in customer traffic.  Guardian continues to focus on driving increased
accessibility for customers, strengthening its value proposition and range
optimisation tailored to specific customer demographics.

 

Hero Supermarket sales revenue grew year-on-year as a result of contributions
from new store openings in the prior year.  Like-for-like sales continue to
improve from last quarter, assisted by strong improvement in customer
traffic.  Hero continues to innovate through range optimisation programmes
and the rollout of new online shopping initiatives.

 

Business Update

 

Consistent with the Company's strategy of pivoting its business to high
potential brands, IKEA has grown store Pick-Up-Point to 21 at March 2022 (vs.
10 at March 2021).  Hero Supermarkets' store network has grown to 23 at March
2022 (vs. 19 at March 2021).  Whilst Guardian's overall network has been
impacted by the execution of the Giant restructure, significant store growth
is expected in the second half.  Following the execution of its strategic
pivot, the Company remains in active discussions with a number of third
parties with respect to potential divestment of owned properties.

 

Prospects

 

The duration of the COVID-19 pandemic and the extent of its impact on PT Hero
remains uncertain.  Nevertheless, we have been encouraged by improving
underlying performance trends as pandemic related restrictions ease.  PT Hero
continues to invest in its key businesses and is confident that these
investments will generate strong returns over the longer term.

 

Patrik Lindvall

President Director

29(th) April 2022

 

For further information contact:

Patrik Lindvall, President Director

PT Hero Supermarket Tbk

Tel: +62-21-8378 8388

E-mail: extcomm@hero.co.id

 

 

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