Dairy Farm International Hldgs Ltd Full Year 2019 Results of PT Hero (1302F)
March 05 2020 - 4:20AM
UK Regulatory
TIDMDFI TIDMJAR TIDMJDS
RNS Number : 1302F
Dairy Farm International Hldgs Ltd
05 March 2020
To: Business Editor 5th March 2020
For immediate release
PT HERO SUPERMARKET TBK
FULL YEAR 2019 RESULTS
The following announcement was issued today by the Company's
88.5%-owned subsidiary, PT Hero Supermarket Tbk.
For further information, please contact:
Dairy Farm Management Services Limited
Kirsten Molyneux (852) 2299 1884
Diky Risbianto ( 62 - 21 ) 8378 8388
Brunswick Group Limited
David Ashton (852) 3512 5063
South Tangerang, 5(th) March 2020
PT HERO SUPERMARKET TBK
FULL YEAR 2019 RESULTS
Highlights
-- Net revenue 5.4% lower at Rp 12,268 billion as result of space optimisation plan
-- Profit higher at Rp 71 billion as early stages of transformation delivers progress
-- Double digit sales growth from Guardian and IKEA
-- Multi-year performance transformation on track
Results
Audited Full Year
2019 2018 Change
---------------------
Rp billion Rp billion %
--------------------- ----------- ----------- -------
Net Revenue 12,268 12,970 -5.4
Gross Profit 3,547 3,694 -4.0
Profit/(Loss) for
the year 71 (1,250) n.m.
Rp Rp %
----------- -----------
Earnings/(Loss) per
share 17 (299) n.m.
---------------------- ----------- ----------- -------
PRESIDENT DIRECTOR'S STATEMENT
Introduction
While the Group's store optimisation plan negatively impacted
sales of the Food business in 2019, this was partially offset by
significant sales increases at both our Guardian and IKEA
businesses. The Guardian Health and Beauty and IKEA Home Furnishing
businesses delivered double-digit sales growth as customers
continue to respond positively to the offering from both banners.
Underlying profitability grew as the fundamentals underpinning the
businesses improved as part of our multi-year transformation.
Financial Performance
Profit of Rp 71 billion was a significant improvement from the
prior year, which was impacted by one-off costs associated with the
actions taken by management to reset the business. Excluding the
impact of non-recurring items, underlying profits grew strongly in
2019, driven by improved performance from the Food business as we
executed our store optimisation plan and as our multi-year
transformation programme delivered enhancements in quality and
operating standards. We have made progress on price competitiveness
and enhancing shopping experiences to better serve our customers.
Our pilot schemes and new format launches were also well
received.
Guardian delivered double-digit growth in sales and underlying
profit. The business maintained a strong market price position as
well as completing a series of successful store remodels, with
greater emphasis on Beauty categories and the addition of local
Halal certified ranges, all of which were well received by
customers and helped to lift sales.
IKEA also reported double-digit sales growth underpinned by
investments in a new store in Sentul as well as e-commerce growth,
although profits were affected by investments made as well as
higher cost of goods sold.
Business Activities
PT Hero remains committed to its multi-year transformation plan
to reshape and revitalise its business portfolio, to optimise its
customer offer to ensure quality and value and to improve the
productivity of its stores for the benefits of its customers and
team members. We are putting greater emphasis on fresh food, range
optimisation and the repurposing of space , which will lead to a
stronger and more sustainable business going forward. Food retail
in Indonesia has seen increasing competition in recent years with
the growth of different store formats, as well as evolving consumer
behaviors. We must consistently adapt to the changing market to
compete effectively .
Our Health and Beauty business continues to demonstrate strong
growth momentum, supported by strong revenue and like-for-like
sales growth. There was also strong double-digit percentage growth
in profits, which reflected our strong retail execution as better,
more relevant range was introduced into stores and as investments
were made in cost-effective store refits.
We continue to invest in the future growth of the Home
Furnishing business and remain committed to our strategic plan - to
meet the demands of growing middle-income consumers - which
involves opening both traditional and new IKEA formats. The new
Sentul store was an IKEA world first, as it came from the
conversion of a Giant hypermarket under our space optimisation
plan. Works were carried out in a record-breaking five months. The
performance of the store since its November opening has been
pleasing. During 2019, good progress has also been made with new
store projects in Jakarta Garden City and Bandung, which are
anticipated to open in the next 12 months.
Prospects
While performance in the current year will depend on
macroeconomic conditions, PT Hero remains firmly focused on its
multi-year transformation plan and is confident that the actions
currently underway will lead to a better, more profitable and more
sustainable business, with an optimized retail portfolio, improved
product offerings, as well as a stronger response to customers'
demands . We remain committed to being a strong competitive
retailer in each of our retail sectors and to growing our business
over the long term in Indonesia.
Patrik Lindvall
President Director
5(th) March 2020
- end -
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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END
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