TIDMDFI TIDMJAR TIDMJDS
RNS Number : 5057W
Dairy Farm International Hldgs Ltd
27 April 2016
To: Business Editor 27th April 2016
For immediate release
PT HERO SUPERMARKET TBK
FIRST QUARTER 2016 RESULTS
The following announcement was issued today by the Company's
83.9%-owned subsidiary, PT Hero Supermarket Tbk.
For further information, please contact:
Dairy Farm Management Services
Limited
Neil Galloway (852) 2299 1896
Brunswick Group Limited
Siobhan Xiaohui Zheng (852) 3512 5044
South Tangerang, 27(th) April 2016
PT HERO SUPERMARKET TBK
FIRST QUARTER 2016 RESULTS
Highlights
-- Net revenue down 3%
-- Gross profit up 2%
-- Net loss of Rp 35 billion
-- Stores rationalization programme continues
-- Positive free cash flow
"While there are initial signs of margin improvement, the
trading conditions for Food are expected to remain challenging.
Various initiatives are underway to improve the profitability of
the Food business, and continuing progress is expected in both
Health and Beauty and IKEA."
Stephane Deutsch
President Director
Results
(Unaudited)
First quarter
2016 2015 Change
Rp billion Rp billion %
--------------------- ---------------------------- --------------------- -------
Net Revenue 3,409 3,504* -3%
Gross Profit 820 801 +2%
Operating Loss (37) (38) +3%
Loss for the period (35) (33) -6%
Rp Rp %
--------------------- ---------------------------- --------------------- -------
Loss per Share (8) (8) -
* Reclassification due to elimination of consignment sales
PRESIDENT DIRECTOR'S STATEMENT
Overview
The Group's 2016 first quarter result was disappointing with the
Food operations facing declining sales, which was only partially
offset by both Health and Beauty and IKEA achieving double digit
like-for-like sales growth.
Profitability in the Food operations was reduced due to the
lower sales, higher stock provisions and increasing costs resulting
from last year's wage increases. Significant attention continues to
be given to driving sales growth, and several initiatives are
underway to mitigate the effects of rising costs through energy
savings and improved productivity. Health and Beauty and IKEA both
enjoyed improving profitability.
Financial Performance
Total sales were Rp 3,409 billion in the first quarter of 2016,
3% down compared with prior year. A net loss of Rp 35 billion was
recorded for the quarter, compared to a net loss of Rp 33 billion
last year.
Despite reporting a loss for the period, operating cash flow was
Rp 114 billion. The Company's financial position is stable with net
cash of Rp 47 billion, consistent with the position at 31(st)
December 2015.
Business Activities
In the Food operations, the strategic decision to increase the
focus on fresh produce is showing promising results with strong
like-for-like sales growth in this category. Disappointing grocery
and general merchandise sales, however, impacted negatively the
overall Food performance during the quarter, especially in Giant.
Action is also being taken to improve the efficiency of the supply
chain, with increased centralization through the Group's
distribution centres.
Both Giant Ekstra and Ekspres are taking action to improve their
trading and their profitability.
The Group's upscale format, Hero Supermarket, had stable
like-for-like sales. It is continuing to focus on enhancing its
offer across the fresh, imported and exclusive ranges to provide a
more distinctive choice for customers.
In Health and Beauty, Guardian's store rationalization programme
is progressing well which, together with the introduction of
refreshed branding and increasing private label development, is
leading to improvements in both sales and profitability.
In Home Furnishings, IKEA has produced a strong performance,
exceeding sales and profitability expectations.
The Company is continuing to invest in the technology required
to deliver a superior offer and provide a compelling shopping
experience for customers.
A total 28 net stores were closed in the first quarter,
including 1 Giant Ekspres, 24 Guardian and 5 Starmart. This was
offset by the opening of 2 outlets (1 Guardian and 1 Giant Ekstra).
As at 31(st) March 2016, the Company operated 582 stores,
comprising 54 Giant Ekstra, 153 Giant Ekspres and Hero Supermarket,
295 Guardian Health and Beauty stores, 1 IKEA and 79 Starmart
convenience stores.
Prospects
While there are initial signs of margin improvement, the trading
conditions for Food are expected to remain challenging. Various
initiatives are underway to improve the profitability of the Food
business, and continuing progress is expected in both Health and
Beauty and IKEA.
Stephane Deutsch
President Director
27(th) April 2016
- end -
For further information contact:
Stephane Deutsch, President Director
PT Hero Supermarket Tbk
Tel: +62-21-8378 8388, Fax: +62-21-831 7764
This information is provided by RNS
The company news service from the London Stock Exchange
END
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