3 LapKeu HERO Q3 23 PR Eng v4.pdf

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PRESIDENT DIRECTOR’S STATEMENT


Introduction
The Company’s sales and gross profit increased in the third quarter relative to the same period
last year. Guardian Health and Beauty continued to report strong results in the third quarter,
while IKEA and Hero Supermarket reported improved like-for-like sales momentum.


Company Performance
The Company’s net revenue in the first nine months was Rp 3,803 billion, 18% higher than the
prior comparable period. Reported profit was Rp 19 billion, compared to the Rp 85 billion loss
reported in 2022 mainly due to gains on the divestment of non-core properties.


Guardian Health and Beauty reported like-for-like sale growth of more than 20%, underpinned
by a recovery in foot traffic to stores in premium malls and tourist locations. As a result,
profitability significantly improved compared to the same period last year. Guardian continues
to strengthen its value proposition by optimising its range and developing its omnichannel
presence to increase accessibility for customers.


IKEA’s reported revenue increased for the first nine months compared to the same period last
year, primarily driven by the annualised impact of new store openings. Like-for-like sales over
the first nine months were impacted by reduced average customer spending, due to a reduction
in demand for durable goods as customers focussed spend more on leisure and travel.
Encouragingly, however, like-for-like sales momentum improved in the third quarter relative
to prior quarters. Profitability for the first nine months was also adversely affected by reduced
customer demand and gross margin. For the remainder of the year, IKEA will continue to drive
initiatives to improve customer experience, enhance inventory management and focus on store
productivity and cost control.


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                                          PT Hero Supermarket Tbk
Graha Hero I CBD Bintaro Jaya Sektor 7 Blok B7/A7 I Pondok Jaya, Pondok Aren I Tangerang Selatan 15220-Indonesia
                     Phone: +6221 8378 8388 I www.hero.co.id I Call Centre 0-800-1-998877

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Hero Supermarket’s sales and profitability continued to be impacted by lower demand for key
consumer staples. Nevertheless, like-for-like sales momentum improved in the third quarter
relative to prior quarters. Hero Supermarket continues to innovate with new store format
development and the implementation of robust cost controls to improve store productivity.


Business Update
During the first nine months, the Group divested three properties, contributing to an improved
financial position. The Company remains in discussions with third parties with respect to
divesting its remaining non-core properties.


Prospects
The Group continues to see variability in demand patterns across its business units. The
encouraging recovery in the Health and Beauty business is expected to continue. The recovery
in the underlying Home Furnishing business is, however, likely to be uneven, and the Company
will continue to focus on enhancing sales productivity in stores and implementing cost controls.
The Company remains well-positioned to deliver sustainable growth over the medium to long-
term.


Patrik Lindvall
President Director
31st October 2023


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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                                          PT Hero Supermarket Tbk
Graha Hero I CBD Bintaro Jaya Sektor 7 Blok B7/A7 I Pondok Jaya, Pondok Aren I Tangerang Selatan 15220-Indonesia
                     Phone: +6221 8378 8388 I www.hero.co.id I Call Centre 0-800-1-998877