Dairy Farm International Hldgs Ltd PT Hero Supermarket Tbk First Half 2021 Results (9059G)
29 Julio 2021 - 04:19AM
UK Regulatory
TIDMDFI TIDMJAR
RNS Number : 9059G
Dairy Farm International Hldgs Ltd
29 July 2021
Announcement
29th July 2021
PT HERO SUPERMARKET TBK
FIRST HALF 2021 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) July 2021
PT HERO SUPERMARKET TBK
FIRST HALF 2021 RESULTS
Highlights
-- Strategic pivot announced following detailed business review
-- Net loss of Rp 551 billion, with Rp 537 billion non-recurring restructuring costs
-- Health and Beauty, IKEA significantly affected by pandemic-related restrictions
-- PT Hero remains well-positioned as a strong, competitive retailer in Indonesia
Results
(Unaudited)
First Half
2021 2020 Change
---------------------
Rp billion Rp billion %
--------------------- --------------- ----------- ----------- --------
Net Revenue 3,668 4,956 -26
Gross Profit 1,025 1,278 -20
Loss for the period (551) (202) n.m.
Loss per share (132) (48) n.m.
-------------------------------------- ----------- ----------- --------
PRESIDENT DIRECTOR'S STATEMENT
Introduction
The Company continued to face significant challenges in the
first half of 2021 due to the pandemic, the related imposition of
PPKM ( Enforcement of Limitation on Community Activities ) and
changes in customer shopping habits. Following a detailed strategic
business review, the Company announced in May that it will be
changing its trading approach by increasing its investment in the
IKEA, Guardian and Hero Supermarket banners and pivoting away from
the Giant brand. This change in strategy is a decisive and
necessary response to changing market dynamics, particularly given
the move by Indonesian consumers' away from the hypermarket format
in recent years, which has been accelerated by the COVID-19
pandemic.
Financial Performance
The Company reported a net loss of Rp 551 billion in the first
half, with Rp 537 billion non-recurring charges incurred due to the
Giant restructure.
The underlying financial performance of the PT Hero Grocery
Retail business in the first half has been adversely impacted by
both the pandemic and the announced restructure. Strict social
distancing restrictions, local travel bans and the closure or
imposition of heavy trading constraints on shopping malls have
substantially changed consumer behaviours and limited foot traffic
into these locations. Consequently, this has materially impacted
the performance of large format destination hypermarkets. Ongoing
space optimisation has also affected sales growth performance.
Guardian Health and Beauty like-for-like sales improved
significantly in the second quarter relative to the first quarter
as customer behaviour gradually normalised. Underlying
profitability also improved in the first half relative to the prior
year. However, additional movement restrictions implemented in July
have subsequently impacted sales. Guardian remains committed to
strengthening its value proposition and relevance to customers, and
continues to focus on prudent cost controls to ensure it emerges
strongly from the current exceptional trading conditions.
IKEA total sales grew primarily due to the opening of the third
IKEA Indonesia store in Bandung in the first quarter. Restrictions
on operating capacity, disruptions to trading from COVID-19, and
supply chain disruption impacted the availability of products and
like-for-like sales. IKEA's profitability was affected by higher
pre-opening expenses associated with new store openings and reduced
like-for-like sales. Good progress continues to be made towards the
opening of the fourth IKEA store in Jakarta Garden City, expected
to be later this year.
Business update
Following the announcement of the change in PT Hero's strategic
approach, the Company intends to convert a number of stores into
both the IKEA and Hero supermarket brands. The Company remains in
active discussions with third parties with respect to the
divestment of a number of other stores and owned properties, with
the completion of the transaction expected in the third quarter.
Cash generated from proceeds from asset sales will provide PT Hero
with funding to support its future growth initiatives.
Prospects
The duration of the pandemic and the extent of its impact on PT
Hero remain uncertain. However, the Company expects 2021 to remain
challenging. The Company remains committed to its retail business
in Indonesia and confident in its position as a strong competitive
retailer over the long term.
Patrik Lindvall
President Director
29(th) July 2021
- end -
For further information contact:
Patrik Lindvall, President Director
PT Hero Supermarket Tbk
Tel: +62-21-8378 8388
E-mail: extcomm@hero.co.id
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
DOCSEMSUUEFSEFW
(END) Dow Jones Newswires
July 29, 2021 05:19 ET (09:19 GMT)
Dfi Retail (LSE:DFI)
Gráfica de Acción Histórica
De Feb 2024 a Mar 2024
Dfi Retail (LSE:DFI)
Gráfica de Acción Histórica
De Mar 2023 a Mar 2024