Dairy Farm International Hldgs Ltd Nine Months 2016 Results of PT Hero (6261N)
October 27 2016 - 5:20AM
UK Regulatory
TIDMDFI TIDMJAR TIDMJDS
RNS Number : 6261N
Dairy Farm International Hldgs Ltd
27 October 2016
To: Business Editor 27th October 2016
For immediate release
PT HERO SUPERMARKET TBK
NINE MONTHS 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) October 2016
PT HERO SUPERMARKET TBK
NINE MONTHS 2016 RESULTS
Highlights
-- Net revenue down 4%
-- Gross profit up 4%
-- Net profit of Rp 45 billion
-- Store rationalization programme largely completed
"The retail trading environment is expected to remain difficult
for the remainder of the year, especially for the Food business
where initiatives are being implemented to improve performance. The
Health and Beauty and Home Furnishings businesses have been more
resilient and the outlook for these formats remains positive."
Stephane Deutsch
President Director
Results
Unaudited Nine Months
2016 2015 Change
------------------
Rp billion Rp billion %
------------------ ------------------ --------------------- ----------------------- -------
10,963
Net Revenue - Total 10,470 * -4
Gross Profit - Total 2,602 2,511 * +4
Operating Profit
/ (Loss) - Total 25 (3) n.m.
Profit / (Loss)
for the period - Continuing 35 (2) n.m.
- Discontinued** 10 (29) n.m.
- Total 45 (31) n.m.
Rp Rp %
------------------ ------------------ --------------------- ----------------------- -------
Profit / (Loss)
per Share - Continuing 9 (1) n.m.
- Discontinued** 2 (6) n.m.
- Total 11 (7) n.m.
------------------------------------- --------------------- ----------------------- -------
* Reclassification due to elimination of consignment sales and
Starmart operations
**Starmart operations
n.m. = not meaningful
PRESIDENT DIRECTOR'S STATEMENT
Overview
For the third quarter, sales in the Food business were
negatively impacted by store closures, the timing of Eid Mubarak
trading, and continuing weakness in consumer confidence. While
like-for-like sales were negative for Food, they were positive for
both Health and Beauty and Home Furnishings.
Profitability in each of Food and non-Food improved despite the
challenging trading environment, partly due to good progress in
reducing store operating expenses. Fresh initiatives are being
taken to enhance sales growth in Food while sustaining the progress
on margins.
Health and Beauty remained focused on range improvements to
drive top-line growth, and Home Furnishings saw further development
in sales and profitability.
Financial Performance
Total sales in the nine months of 2016 were 4% lower at Rp
10,470 billion. Nevertheless, improved margins and tighter cost
controls helped to produce a net profit of Rp 45 billion, a
significant improvement over the prior year net loss of Rp 31
billion.
Business Activities
Improvements to the fresh produce offer have been a focus for
the Food business and this category has generated positive sales.
Other categories, however, declined and initiatives to restore
sales growth in these areas are underway. Action is also being
taken to improve supply chain efficiency and achieve better
utilization of the Group's distribution centres.
In Health and Beauty, Guardian's store rationalization programme
is progressing well. Strong like-for-like sales growth and well
managed store operating expenses have improved profitability
significantly.
In Home Furnishings, IKEA produced strong sales growth and
improved margins, resulting in higher profits. The IKEA online
sales channel went live in the third quarter.
Of the Group's continuing operations, store numbers for the nine
months were reduced by 61 on a net basis, primarily due to the
Guardian rationalization programme. As at 30(th) September 2016,
the Group operated 465 stores, comprising 55 Giant Ekstra, 148
Giant Ekspres and Hero Supermarket, 261 Guardian Health and Beauty
stores and 1 IKEA store.
Prospects
The retail trading environment is expected to remain difficult
for the remainder of the year, especially for the Food business
where initiatives are being implemented to improve performance. The
Health and Beauty and Home Furnishings businesses have been more
resilient and the outlook for these formats remains positive.
Stephane Deutsch
President Director
27(th) October 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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