TIDMDFI TIDMJAR TIDMJDS
RNS Number : 7287V
Dairy Farm International Hldgs Ltd
25 July 2018
To: Business Editor 25th July 2018
For immediate release
PT HERO SUPERMARKET TBK
FIRST HALF OF 2018 RESULTS
The following announcement was issued today by the Company's
84.5%-owned subsidiary, PT Hero Supermarket Tbk.
For further information, please contact:
Dairy Farm Management Services Limited
Neil Galloway (852) 2299 1896
Brunswick Group Limited
Annabel Arthur (852) 3512 5075
South Tangerang, 25(th) July 2018
PT HERO SUPERMARKET TBK
FIRST HALF OF 2018 RESULTS
Highlights
-- Net revenue down 1%, held back by the Food business
-- Continued strong performance in Health and Beauty and IKEA
-- Net profit down 52% at Rp 34 billion
"Performance of the Food business remains weak with lower sales
driving higher losses, notwithstanding some improvement in the
second quarter, which benefitted from the festive period. In
contrast, the performance of the Non-Food businesses continues to
improve. A new management team has been appointed and plans are
underway to improve overall performance."
Patrik Lindvall
President Director
Results
(Unaudited)
First Half
2018 2017 Change
Rp billion Rp billion %
----------------------- ---------------------------------------------------- ----------- -------
Net Revenue 6,846 6,923 -1
Gross Profit 1,825 1,793 +2
Operating profit 29 86 -67
Profit for the period 34 71 -52
------------------------ ---------------------------------------------------- ----------- -------
Rp Rp %
----------------------- ---------------------------------------------------- ----------- -------
Profit per share 8 17 -53
PRESIDENT DIRECTOR'S STATEMENT
Overview
For the first half of 2018, the Food business continued to face
challenges and drove an overall decline in the Company's sales and
profits. Trading in the second quarter was better than the first
quarter as the Company benefitted from the impact of the Hari Raya
festival, with improved product availability and more effective
promotions.
While Giant experienced weaker sales, the performance of our
upscale Hero supermarket has been more encouraging, with good sales
growth.
At the same time, our Guardian and IKEA businesses continued to
deliver strong growth in sales and profit.
Financial Performance
Total sales in the first half were 1% lower at Rp 6,846 billion,
due to lower sales in Food, while Non-Food delivered strong top
line growth. The Company recorded a net profit of Rp 34 billion,
compared with Rp 71 billion in the same period last year. Higher
losses in the Food division were partly offset by increasing
profits from Guardian and IKEA, as well as successful cost
efficiency improvements.
Food sales were 7% lower at Rp 5,431 billion, due to store
closures and negative like-for-like sales, leading to an operating
loss of Rp 133 billion, before unallocated corporate expenses,
compared with a loss of Rp 16 billion in the same period last
year.
Sales in Guardian and IKEA grew strongly by 27% to Rp 1,415
billion. Operating profit was Rp 189 billion, before unallocated
corporate expenses, compared with Rp 131 billion in the prior
year.
Free cash flow in the first half of 2018 was Rp 227 billion,
resulting from reduced capital expenditure as well as more
efficient stock management.
As at 30(th) June 2018, the Company had net cash of Rp 454
billion, compared to Rp 226 billion at the prior year end.
Business Activities
We have appointed a number of new senior executives and embarked
on a comprehensive Change Program to transform and turn the Food
business around, while also continuing to grow the Non-Food
businesses.
Guardian maintained its sales momentum throughout the first
half. The Beauty categories continued to perform well, helped by
new range introductions and space realignment. A new Distribution
Centre will become operational in July, improving service to the
east of the country.
For IKEA, sales performance continued to show positive momentum
and growth was supported by an increase in the number of visits to
the Alam Sutera store, as well as growing IKEA e-commerce sales.
Continued investments in improved services and staff development,
as well as innovative displays of home furnishing solutions, have
strengthened IKEA's unique proposition with Indonesian
consumers.
As at 30(th) June 2018, the Company operated 450 stores,
comprising 59 Giant Ekstra, 99 Giant Ekspres, 31 Hero Supermarkets,
3 Giant Mart, 257 Guardian Health and Beauty stores and one IKEA
store.
Prospects
Performance of the Food business remains weak with lower sales
driving higher losses, notwithstanding some improvement in the
second quarter, which benefitted from the festive period. In
contrast, the performance of the Non-Food businesses continues to
improve. A new management team has been appointed and plans are
underway to improve overall performance.
Patrik Lindvall
President Director
25(th) July 2018
- end -
For further information contact:
Patrik Lindvall, President Director
PT Hero Supermarket Tbk
Tel: +62-21-8378 8388, Fax: +62-21-831 7764
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END
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