Dairy Farm International Hldgs Ltd First Half 2020 Results of PT Hero (4857U)
July 29 2020 - 04:53AM
UK Regulatory
TIDMDFI TIDMJAR TIDMJDS
RNS Number : 4857U
Dairy Farm International Hldgs Ltd
29 July 2020
To: Business Editor 29th July 2020
For immediate release
PT HERO SUPERMARKET TBK
FIRST HALF 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, 29(th) July 2020
PT HERO SUPERMARKET TBK
FIRST HALF 2020 RESULTS
Highlights
-- Half year results impacted by store optimisation plan and COVID-19 in second quarter
-- Net loss of Rp 202 billion
-- Grocery Retail and Health and Beauty significantly affected by pandemic-related restrictions
-- Triple-digit e-commerce growth for IKEA
-- Multi-year transformation continues, despite market challenges
Results
(Unaudited)
First Half
2020 2019 Change
---------------------
Rp billion Rp billion %
--------------------- --------------- ----------- ----------- -------
Net Revenue 4,956 6,673 -25.7
Gross Profit 1,278 1,835 -30.3
Loss for the period (202) 8 n.m
Rp Rp %
--------------- ----------- -----------
Loss per share (48) 2 -
-------------------------------------- ----------- ----------- -------
PRESIDENT DIRECTOR'S STATEMENT
Overview
The Group remains confident in its multi-year business
turnaround strategy but faced significant challenges in the first
half of 2020 as a result of COVID-19 restrictions and changing
customer shopping habits.
Guardian Health and Beauty delivered strong sales and underlying
profit growth in the first quarter, but its second quarter
performance was impacted by pandemic-related restrictions in
Indonesia, which limited customer access to stores. IKEA home
furnishing revenues were supported by strong e-commerce
performance, but were also adversely impacted by temporary store
closures in the first half. The company's Grocery Retail business
was significantly adversely impacted by the pandemic, with
restrictions leading to material changes in customer shopping
habits and product demand patterns.
Financial Performance
Guardian reported strong growth in sales and underlying profit
in the first quarter. However, its second quarter performance was
significantly impacted by pandemic-related restrictions in
Indonesia and the changes in customer behaviour they caused.
Reduced operating hours, closure of some malls and lower mall
traffic impacted sales and profitability in the first half. Despite
challenging market conditions, Guardian remains committed to
maintaining its competitive position and we remain very confident
in the longer-term prospects for the business.
IKEA Home Furnishing sales was supported by triple-digit
e-commerce growth in the first half. However, restrictions on store
opening hours impacted total sales growth for the first half as
well as profitability. The space expansion programme continues to
progress and will support the brand's future growth in Indonesia,
with construction continuing on two new IKEA sites. However, the
impact of the pandemic has slowed construction and this may delay
the store openings to 2021.
Retail sales within the PT Hero Grocery Retail business were
impacted by the annualisation effect of the Group's store
optimisation plan implemented last year. However, the most
significant impact on underlying financial performance came from
changes in customer behaviours - which led to consumers focusing on
necessity shopping, driven by lower disposable income - as well as
a rise in cost of goods in the first half. In addition, due to
strict social restrictions and local travel bans, customers
increasingly switched to convenience and proximity shopping, which
impacted the performance of large format destination hypermarkets
the most.
People
We would like to express our deep thanks and appreciation to all
our team members who have gone above and beyond to service our
customers in these challenging times.
Outlook
Whilst PT Hero's overall performance during the first half was
significantly affected by COVID-19, which impacted both customer
shopping habits and store operations for Guardian, IKEA and the
Grocery Retail businesses, we are confident that our business is
well positioned to serve our customers and that we will emerge from
the pandemic well placed for future growth. 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
29(th) July 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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