Dairy Farm International Hldgs Ltd PT Hero Supermarket Tbk First Quarter 2021 Results (2289X)
30 April 2021 - 8:03PM
UK Regulatory
TIDMDFI TIDMJAR
RNS Number : 2289X
Dairy Farm International Hldgs Ltd
30 April 2021
Announcement
30th April 2021
PT HERO SUPERMARKET TBK
FIRST QUARTER 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
Gwendolyn Cheong (65) 8907 9249
South Tangerang, 30(th) April 2021
PT HERO SUPERMARKET TBK
FIRST QUARTER 2021 RESULTS
Highlights
-- First quarter 2021 results significantly impacted by COVID-19
-- Grocery Retail, Health and Beauty materially impacted by pandemic-related restrictions
-- IKEA achieves significant milestone by opening third store in Indonesia
-- PT Hero remains well positioned as a strong, competitive retailer in Indonesia
Results
(Unaudited)
First Quarter
2021 2020 Change
---------------------
Rp billion Rp billion %
--------------------- --------------- ----------- ----------- -------
- 32
Net Revenue 1,763 2,601 . 2
- 29
Gross Profit 494 703 . 7
Loss for the period (2) (44) n.m.
Rp Rp %
--------------- ----------- -----------
Loss per share (0.4) (10) n.m.
-------------------------------------- ----------- ----------- -------
PRESIDENT DIRECTOR'S STATEMENT
Introduction
The Company continued to face significant challenges in the
first quarter of 2021 due to the COVID-19 pandemic, the related
imposition of PPKM ( Enforcement of Limitation on Community
Activities ) and changes in customer shopping habits.
The Group's Grocery Retail and Health and Beauty businesses
continued to be adversely impacted by the pandemic. PPKM
restrictions led to changes in customer shopping behaviours and
product demand patterns and impacted traffic into stores within
malls.
IKEA Home Furnishing stores were also impacted by
pandemic-related restrictions, with challenging trading within
stores partially offset by strong e-commerce growth.
Financial Performance
The Company reported a net loss of Rp 2 billion. Whilst the loss
was disappointing, it would have been substantially greater in the
quarter were it not for the reversal of lease liability provisions
booked in prior periods.
IKEA sales were impacted by restrictions on operating capacity
as well as disruptions to trading from COVID-19, partially offset
by strong e-commerce growth. Total operating profit was impacted by
reduced store profitability due to lower sales, as well as high
pre-opening expenses incurred for new stores planned to open in
2021. During the quarter, IKEA Indonesia opened its third store in
Bandung, marking another significant milestone in the development
of the franchise in the country. Good progress continues to be made
with respect to the opening of the fourth IKEA store in Jakarta
Garden City, expected to be later this year.
Guardian Health and Beauty performance continued to be
significantly impacted by pandemic-related restrictions in
Indonesia and associated changes in customer behaviours. Reduced
operating hours, the closure of a number of malls, severe trading
restrictions on complimentary businesses and heavy reductions in
foot traffic all impacted Guardian sales and profitability.
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.
The financial performance of PT Hero Grocery Retail business
continues to be adversely impacted significantly by the pandemic.
Strict social restrictions, local travel bans and, in particular,
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, which are frequently the anchor tenants of shopping
malls and are where the largest proportion of Giant's store space
is located.
Business strategy
The grocery retail sector in Indonesia has seen increasing
competition in recent years with the growth of different store
formats, as well as changes in consumer behaviours, which have
accelerated during the pandemic. During the quarter, the Company
increased the pace of its space optimisation programme to provide
the Grocery Retail business with a more stable financial
foundation. Concurrently, all aspects of the Company's businesses
are being evaluated to ensure that the Group's portfolio is better
placed to compete effectively and deliver improved financial
performance in the future. In this context, the Dairy Farm Group,
as the largest shareholder of the Company, announced, on 29(th)
April 2021, the establishment of a loan facility to the Company.
The provision of this loan facility highlights the Dairy Farm
Group's commitment to PT Hero and provides the Company with
additional financing flexibility to enable it to weather difficult
trading conditions caused by the pandemic and progress ongoing
optimisation programmes.
Prospects
The duration of the COVID-19 pandemic and the extent of its
impact on PT Hero remain uncertain. However, the Company expects
the pandemic to continue to affect its operations this year and for
2021 to remain challenging. The Company remains committed to its
retail future in Indonesia and confident in its position as a
strong competitive retailer over the long term.
Patrik Lindvall
President Director
30(th) April 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
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