Dairy Farm International Hldgs Ltd Fist Quarter 2020 Results of PT Hero (5294P)
June 10 2020 - 5:27AM
UK Regulatory
TIDMDFI TIDMJAR TIDMJDS
RNS Number : 5294P
Dairy Farm International Hldgs Ltd
10 June 2020
To: Business Editor 10th June 2020
For immediate release
PT HERO SUPERMARKET TBK
FIRST QUARTER 2020 RESULTS
The following announcement was issued today by the Company's
88.6%-owned subsidiary, PT Hero Supermarket Tbk.
For further information, please contact:
Dairy Farm Management Services Limited
Diky Risbianto ( 62 - 21 ) 8378 8388
Gwendolyn Cheong (65) 8907 9249
Kirsten Molyneux (852) 2299 1884
South Tangerang, 10(th) June 2020
PT HERO SUPERMARKET TBK
FIRST QUARTER 2020 RESULTS
Highlights
-- Continuing confidence in multi-year transformation
-- Net revenue affected by store optimisation plan in prior year and COVID-19
-- Strong online growth by IKEA
-- Net loss of Rp 44 billion due to COVID-19 impact
Results
(Unaudited)
First Quarter
20 20 2019 Change
---------------------
Rp billion Rp billion %
--------------------- --------------- ------------- ------------- -------
Net Revenue 2,601 3,060 -15
Gross Profit 703 872 -19
Loss for the period (44) (4) n.m
Rp Rp %
--------------- ------------- -------------
Loss per share (10) (1) -
-------------------------------------- ------------- ------------- -------
PRESIDENT DIRECTOR'S STATEMENT
Introduction
PT Hero remains confident in its multi-year business turnaround
strategy but faced significant challenges in the first quarter of
2020. Guardian Health and Beauty delivered a strong performance in
the quarter, but began to be impacted towards the end of the period
by COVID-19-related restrictions in Indonesia which limited
customer access to stores. IKEA Home Furnishing saw increased sales
supported by strong e-commerce growth as well as the annualisation
impact of new store space growth which was added in the prior year.
The Company's Food grocery business, however, was significantly
adversely impacted by the pandemic, with restrictions leading to
material changes in customer shopping habits and product demand
patterns.
Financial Performance
Guardian delivered strong growth in the first quarter in both
sales and underlying profit. The business maintained a competitive
market price position and benefited from store remodels completed
in 2019. Towards the end of the quarter, however, the business was
significantly impacted by the closure of some malls and reduced
operating hours.
IKEA saw significant sales growth in its e-commerce business, as
consumers moved to online channels to make purchases due to
COVID-19. Online growth and the annualisation impact from new
stores opened in the prior year offset reduced foot traffic into
existing stores. Further IKEA space expansion is underway, securing
future growth for the brand in Indonesia, and pre-opening
investments for new stores impacted profitability in the first
quarter.
Retail sales within the PT Hero Food business were impacted as a
result of the annualisation effect of the Company's store
optimisation plan last year. The most significant impact on
underlying financial performance came from changes to customer
shopping habits as a result of pandemic-related restrictions, as
well as a rise in the cost of goods in the quarter.
While the Hero brand and Giant Supermarkets saw some benefit as
a result of their standalone locations and customer proximity,
large format destination hypermarkets located in shopping malls
were significantly impacted as result of severe trading
restrictions imposed on malls which reduced customer traffic
significantly.
Prospects
PT Hero's overall performance since the end of the first quarter
has continued to be significantly affected by the COVID-19
pandemic. The pandemic has impacted both customer shopping habits
and store operations for Guardian and IKEA. While the shorter term
impact of COVID-19 on performance is a concern, the Company remains
confident in its strategic turnaround plan and believes that the
actions currently underway will lead to a better, more profitable
and more sustainable business. The Company remains committed to
providing a competitive offering in each of its retail sectors and
to growing its business over the long term in Indonesia.
Patrik Lindvall
President Director
10(th) June 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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