TIDMDFI TIDMJDS TIDMJAR
RNS Number : 3938M
Dairy Farm International Hldgs Ltd
27 April 2018
To: Business Editor 27th April 2018
For immediate
release
PT HERO SUPERMARKET TBK
FIRST QUARTER 2018 RESULTS
The following announcement was issued today by the Company's
84.5%-owned subsidiary, PT Hero Supermarket Tbk.
For further information, please contact:
Dairy Farm Management Services
Limited
Neil Galloway (852) 2299 1896
Brunswick Group Limited
Annabel Arthur (852) 3512 5075
South Tangerang, 27(th) April 2018
PT HERO SUPERMARKET TBK
FIRST QUARTER 2018 RESULTS
Highlights
-- Net revenue down 2%
-- Net loss of Rp 4 billion
-- Weakness in the Food business
-- Strong results in Health and Beauty and IKEA
"The trading environment remained challenging in the first
quarter of 2018, but gross margins are increasing and costs were
lower than the same period last year. Health and Beauty and IKEA
continue to trade well, with strong sales and profit growth."
Stephane Deutsch
President Director
Results
(Unaudited)
First Quarter
2018 2017 Change
Rp billion Rp billion %
--------------------- ------------------------------------------------------- ----------- -------
Net Revenue 3,045 3,109 -2
Gross Profit 867 825 +5
Operating Loss (13) (10) -30
Loss for the period (4) (6) +33
---------------------- ------------------------------------------------------- ----------- -------
Rp Rp %
--------------------- ------------------------------------------------------- ----------- -------
Loss per share (1) (1) -
PRESIDENT DIRECTOR'S STATEMENT
Overview
The Indonesian modern grocery retail sector experienced weak
trading in the first quarter of 2018. There was a shift in consumer
behaviour towards savings, with everyday household consumption
continuing to weaken. As a result, sales in the Food business
remained challenging.
In response to the difficult market environment, steps are being
taken to revive growth through a revised promotion strategy focused
on everyday value for customers and enhanced product availability
in stores.
The Group's Non-Food businesses performed well during the
period.
Financial Performance
Total sales in the first quarter were 2% lower at Rp 3,045
billion. The Company recorded a net loss of Rp 4 billion, compared
with a net loss of Rp 6 billion in the same period last year, with
the improvement being supported by enhanced margins.
Food sales were 7% lower at Rp 2,455 billion, due to store
closures and negative like-for-like sales, leading to an operating
loss of Rp 87 billion, before unallocated corporate expenses,
compared with Rp 56 billion in the comparable period last year.
Sales in the Non-Food businesses increased by 22% to Rp 589
billion, with both Guardian and IKEA showing strong growth.
Operating profit was Rp 87 billion, before unallocated corporate
expenses, compared with Rp 63 billion last year.
Free cash flow for the quarter improved to negative Rp 30
billion compared to negative Rp 103 billion in the comparable
period last year, primarily due to reduced capital expenditure.
As at 31(st) March 2018, the Company had net cash of Rp 197
billion, compared to Rp 226 billion at the prior year end.
Business Activities
The weak trading environment has led to negative like-for-like
sales growth in the Food business. In response, a new promotion
strategy is being pursued. This includes revised promotional
activity, together with a review of the range and the
competitiveness of the pricing strategy across all formats.
Clearance activities for general merchandise products continued to
deliver encouraging results in the first quarter.
Guardian continued to trade well. The focus on improving the
beauty offer has resonated with customers and this segment is
performing ahead of expectations. A second distribution centre will
open later this year to meet increasing demand. There will be
continued focus on further refining the range to meet customer
needs.
In IKEA, sales performance showed positive momentum. Growth was
driven by an increase in footfall at the IKEA Alam Sutera store, as
well as more sales through IKEA's online platform which continues
to show encouraging progress.
As at 31(st) March 2018, the Company operated 448 stores,
comprising 58 Giant Ekstra, 102 Giant Ekspres, 31 Hero
Supermarkets, 3 Giant Mart, 253 Guardian Health and Beauty stores
and one IKEA store.
Prospects
The trading environment remained challenging in the first
quarter of 2018, but gross margins are increasing and costs were
lower than the same period last year. Health and Beauty and IKEA
continue to trade well, with strong sales and profit growth.
Stephane Deutsch
President Director
27(th) April 2018
- 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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