3 LapKeu HERO HY 23 PR Eng.pdf

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PRESIDENT DIRECTOR’S STATEMENT


Introduction
The Company delivered robust revenue and gross profit growth for the first half of the year.
Guardian Health and Beauty reported a strong recovery in both revenue and profitability.
IKEA, however, has seen a slower recovery, with momentum improving in the second quarter
of the year.


Company Performance
The Company’s net revenue in the first six months was Rp 2,516 billion, 17% above the same
period last year. Reported profit for the half was Rp 132 billion compared to the Rp 114 billion
loss reported in 2022, driven mainly by gains on divestment of non-core properties.


Guardian Health and Beauty continued to report a strong recovery after the pandemic. Stores
in premium malls and tourist locations continued to benefit from a significant increase in foot
traffic. Overall like-for-like sales increased over 30% in the first half. Profitability nearly
doubled in the first half compared to the same period last year, driven by strong sales growth
and operating leverage. Guardian continues to strengthen its value proposition, optimise its
range and develop its omnichannel to increase accessibility for customers.


IKEA’s reported sales increased in the first half primarily due to the annualisation impact of
new store openings. IKEA’s like-for-like sales, however, were impacted by reduced average
customer spending as overall demand for durable goods fell, with customers directing more
consumption towards leisure and travel. Encouragingly, like-for-like performance did improve
in the second quarter.         Our brick-and-mortar stores benefitted from increased customer
visitation. Profitability was also adversely affected by reduced average customer demand. For
the remainder of the year, IKEA’s priorities are improving its customer experience, enhancing
inventory management and ongoing 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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A tapering of demand for key consumer staples impacted Hero Supermarket’s first half sales
performance and profitability. Nevertheless, Hero Supermarket continues to innovate through
format development and range optimisation initiatives and implementing robust cost control to
enhance operational efficiency.


Business Update
Three properties were divested in the first half of the year to improve the Company’s financial
position further. The Company remains in active discussions with third parties with respect to
divestment of its remaining non-core properties.


Prospects
There remains variability in demand patterns across the Group’s business units. The recovery
in the Health and Beauty business is expected to continue. However, underlying Home
Furnishing business recovery will likely be uneven. The Company remains prudent and will
continue to monitor the impact of inflationary pressures and changes in consumer sentiment.
The Company remains committed to investing in its key businesses and building the
foundations to deliver robust and sustainable growth over the medium to long-term.




Patrik Lindvall
President Director
31st August 2023


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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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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