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20251029_LPPF_Laporan Informasi dan Fakta Material_31980351_lamp2.pdf
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29 October 2025 9M/3Q 2025 Earnings Call LPPF.IJ / LPPF.JK
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Executive Summary
MACROECONOMIC COMMENTARY
Income Statement
• Macroeconomic headwinds have impacted consumer confidence index and have
9M25 Sales: IDR 8.5Tn (-10,2% vs. LY; -7.5% SSSG vs. LY). translated in subdued consumer spending.
Weakness seen consistently across regions, with -7.7% SSSG
• Consumer sentiment has been driven particularly by job availability concerns and
in Java and -7.2% SSSG outside of Java, and this is
observed in loan repayment ability.
forecasted to continue in the near term.
Gross Margin: 34.7% (vs. 9M24: 34.6%), with a combination STRATEGIC INITIATIVES
of DP mix improvement and greater pricing discipline. A cautious approach is being adopted amid ongoing macroeconomic uncertainties:
EBITDA: IDR 0.9Tn (vs. 9M24: IDR 1.1Tn), -15.4% vs LY, despite • Improved Economics: Managed operating expenditure through active landlord
a -7.4% reduction in OPEX compared to LY. partnerships, space management and labor productivity improvements.
Net Income: IDR 601Bn (vs. 9M24: IDR 622Bn), -3.5% vs LY • Store Network Optimization: Continue to be cautious and selective in new store
partially driven by reduced interest expenses, depreciation openings. Ongoing evaluation of over 20 underperforming stores on the watchlist, with
and one-off reversal of stores closure provision. targeted pruning planned. Renovation and downsizing efforts are progressing for select
stores.
Balance Sheet • Merchandise: Opened SUKO and ZES monobrand stores in Greater Jakarta, expanding
Inventory: IDR 739Bn (vs. 9M24: IDR 603Bn). beyond Matahari shop-in-shop format. Profit contribution from these private-label
brands remains minimal as they are still in the early stages of development.
Net Debt: IDR 179Bn (vs. 2024: IDR 78Bn) with unutilized • Omnichannel: Fixing core issues on interface/experience, stability, content integrity,
facility of IDR 1.4Tn. efficient operations. Expanding assortment through brands and store fulfillment.
Cash Flow
OUTLOOK
Capital Expenditures: Heightened investment levels planned
to support store maintenance and technology upgrades. • Pace of transformation impacted by macroeconomic uncertainty and long lead times
for changes to take effect.
Dividends: Projected to be lower in coming years, reflecting • Earnings call updates will be less frequent as a result.
weaker profitability and rising capital requirements.
• FY25 EBITDA guidance of IDR 1.0Tn (vs. IDR 1.4Tn in FY24), reflecting sales contraction
and resulting in materially lower dividends.
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Spending Confidence and Capacity
Consumer Confidence Index continues to decline, partially driven by unemployment
concerns and observed in loan repayment ability.
Consumer Confidence Index Non-performing Loan (NPL) of Mortgages
CCI dropped driven by job availability concerns NPL continues to rise, a sign of middle-class weak purchasing power
160 8
Landed House >70 m2
Landed House 22-70 m2
Landed House < 21 m2
140 Flat/Small Apartment >70 m2 6.07
6
Flat/Small Apartment 22-70 m2
131.3
Flat/Small Apartment < 21 m2
4.36 4.47
123.0
123.1 4.26
120 4
115.0 3.18
2.72
3.09
112.1
2.52 2.61
100 2.11 2
Consumer Confidence Index (CCI)
92.0 1.99
Job Availability Index
1.87
Job Availability Expectation Index
80 0
Apr
Nov
Des
Apr
Nov
Des
Apr
Jun
Mei
Juli
Mei
Juli
Jul
Mar
Ags
Okt
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Ags
Okt
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Jan
Feb
Sept
Jan
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Sep
May
Jan
Feb
Aug
Sep
Juni
Juni
Apr
Jun
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Apr
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Dec
Oct
Oct
Jul
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Mar
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Aug
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Feb
2023 2024 2025 2023 2024 2025
Source: Bank Indonesia Source: Bank Indonesia, BNI
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Financial Highlights: Income Statement
Macroeconomic challenges reflected in profitability decline.
Q3 YTD Sep
In IDR Bn
2025 2024 % Growth 2025 2024 % Growth
Gross Sales 1,942 2,245 -13.5% 8,512 9,479 -10.2%
SSSG % -10.8% 1.6% -7.5% -1.6%
Gross Profit* 649 754 -14.0% 2,951 3,280 -10.0%
Gross Margin % 33.4% 33.6% 34.7% 34.6%
OPEX (606) (661) -8.3% (2,036) (2,198) -7.4%
Personnel Expenses (207) (221) -6.0% (686) (757) -9.3%
Occupancy Expenses (331) (362) -8.5% (1,076) (1,140) -5.6%
Marketing Expenses (14) (18) -23.2% (104) (118) -11.7%
Others (53) (60) -11.6% (170) (184) -7.4%
EBITDA 43 93 -53.9% 915 1,081 -11.7%
EBITDA Margin % 2.2% 4.2% 10.8% 11.4%
Net Income (Loss) (3) (4) -25.0% 601 622 -3.5%
Net Income Margin % -0.1% -0.2% 7.1% 6.6%
*Improvement a result of higher DP mix and greater pricing discipline.
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Geographic Sales Performance
Weakness seen consistently across regions.
% YTD Same-store Sales Growth (SSSG)* Gross Sales by
Region (%)
Greater Jakarta 20.9%
Java ex Jakarta 36.7%
Outside
Java Outside Java 42.3%
-7.2% Total Sales 100.0%
Greater Java
Jakarta ex Jakarta
-7.7% -7.7%
*%SSSG 3Q25: Greater Jakarta -12.0%; Java ex Jakarta -12.8%; and Outside Java -8.8%. 5
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Financial Highlights: Balance Sheet
Net debt at IDR 179Bn with unused Bank Loan Facility of IDR 1.4Tn.
ASSET LIABILITIES & EQUITY
In IDR Bn Sep-25 Dec-24 In IDR Bn Sep-25 Dec-24
Cash and Bank Balance 121 399 Bank Loan* 300 -
Trade Receivables 25 40 CV Trade Payables 330 469
Inventories 739 728 DP Trade Payables 386 567
Right-of-Use Assets 1,791 2,177 Lease Liabilities 2,389 2,843
Other Assets 1,283 1,193 Other Liabilities 917 935
Fixed Assets 545 604 Equity 182 326
Total Asset 4,504 5,141 Total Liabilities & Equity 4,504 5,141
* Unutilized facility at IDR 1.4Tn.
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Financial Highlights: Cash Flow Statement
Cautious capex spending and other capital outlay in light of economic condition.
Q3 YTD Sep
In IDR Bn
2025 2024 % Growth 2025 2024 % Growth
Cash Flow from Operating Activities 133 323 (58.8%) 821 1,094 (25.0%)
Cash Flow from Investing Activities (39) (30) 29.5% (101) (99) 2.1%
Cash Flow from Financing Activities (163) (382) (57.3%) (997) (1,380) (27.8%)
Share Repurchase - - 0.0% (62) (2) 4019.8%
Dividends - - 0.0% (668) (452) 47.9%
Other Cash Flow for Financing Activities (163) (382) (57.3%) (266) (927) (71.3%)
Cash Increase (Decrease) (69) (89) (22.6%) (278) (385) (27.9%)
Beginning Cash Balance 190 211 (10.1%) 399 508 (21.4%)
Ending Cash Balance 121 122 (1.0%) 121 122 (1.0%)
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Capital Allocation
Profit shortfall prompting reassessment of capital allocation.
Capex Plan Reduced Dividend
New store opening Future dividends projected to be
Store refurbishment lower than historic as a result of
Technology & maintenance reduced profitability.
Working Capital
Expected to increase with
higher inventory levels
Targeted Net Profit
Profit shortfall
Outlook of Net Profit
FY25 EBITDA guidance of IDR 1.0Tn
Profit Shortfall
(vs. IDR 1.4Tn last year)
*the colors in the graph is illustrative, not proportional to funds allocated 8
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2025 Priorities
Execution Updates: Progress of priorities
• Pursue rental efficiencies through improved • Open monobrand stores, for the SUKO and
space allocation and store layout, ZES brands to expand beyond Matahari
downsizing, and enhanced rental shop-in-shop.
agreements. • Continue store optimization, with nine store
• Optimize in-store labor costs. closures expected by year-end, and
Improved Store Network watchlist reviewed.
• Long lease terms prevent further rental cost
Economics Optimization • Challenges in securing additional space
rationalization.
affect growth.
• Broaden private-label collections through sub- • Fix core issues to improve interface, stability,
category expansion. content, and operations.
• Partner with Consignment Vendors to provide • Expand assortment with brands and store fulfilment.
improved offering. • Strengthen customer engagement via unified
• Relatively long merchandising procurement channel, visibility and loyalty.
Merchandise lead time and incomplete data hinder full • Technology and data issues have curbed progress
Omnichannel
potential. in omnichannel expansion.
Given macroeconomic uncertainties and aforementioned challenges,
the transformation will take longer than expected. Thus, earnings call updates will be less frequent.
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Closing Remarks
Macro challenges Progress and Challenges of Strategic Initiatives
o The macroeconomic environment remains uncertain, with o Improved Economics: Optimized space allocation to support a higher private-
lower consumer confidence and rising unemployment label mix, alongside rental cost efficiencies and workforce productivity gains.
concerns. Longer-term leases continue to limit rental rationalization. Long term leases limit
rental rationalization opportunities.
Impact on performance
o 3Q25 Sales of IDR 1.9Tn was -13.5% YoY, with SSSG -10.8%, o Store Network Optimization: Careful and particular in opening of new stores. Store
with SSSG -12.5% in Java and -8.8% out Java, and negative optimization to continue with nine store closures for this year, along with
growth expected to continue in near term. monitoring of underperforming watchlist stores. Challenges in securing space
o 3Q25 Gross Margin was 33.4%, compared to 33.6% in 3Q24. constrain growth.
Without movements in provision, 3Q25 margin was 33.5%, 0.5
p.p more than last year. o Merchandise: Private label collections further developed to include additional
o 3Q25 EBITDA dropped 53.9% to IDR 43Bn despite an 8.3% categories. Partnership with consignment vendors to further develop offerings.
OPEX reduction. Extended merchandising lead times continue to impede efforts for private label
to reach full potential.
o 3Q25 Net Income was -IDR 3Bn (vs. -IDR 4Bn LY) on lower
depreciation, interest, and one-off provision reversal.
o Omnichannel: Fixing core issues on UI/UX, stability, content, operations.
Expanding assortment through brands and store fulfillment. Enhancing digital
Guidance engagement with unified channels, visibility, loyalty. Technology and data issues
o FY25 EBITDA of IDR 1.0Tn based on accelerated sales decline. slowing omnichannel progress.
o Future dividends are expected to be lower due to lower
profitability and capital requirements. o Transformation timeline extended due to macroeconomic environment and
implementation challenges, leading to less frequent earnings call updates.
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Contact us
PT Matahari Department Store Tbk
Menara Matahari 12th Floor,
Jl Boulevard Palem Raya No.7
Karawaci, Tangerang 15811, Indonesia
Phone: +6221 547 5228 | +62811 9610 1111
Email: ir@matahari.com
www.matahari.com
DISCLAIMER: This presentation has been prepared by PT Matahari Department Store Tbk (“LPPF” or “Company”) for
informational purposes. Neither this presentation nor any of its content may be reproduced, disclosed or used
without the prior written consent of the Company.
This presentation may contain forward looking statements which represent the Company’s present views on the
probable future events and financial plans. These views are based on current assumptions, are exposed to various
risks, and are subject to considerable changes at any time. The Company warrants no assurance that such outlook
will, in part or as a whole, eventually be materialized. Actual results may differ materially from those projected.
The information is current only as of its date and shall not, under any circumstances, create any implication that the
information contained therein is correct as of any time subsequent to the date thereof or that there has been no
change in the financial condition or affairs of LPPF since such date. This presentation may be updated from time to
time and there is no undertaking by LPPF to post any such amendments or supplements on this presentation.
The Company will not be responsible for any consequences resulting from the use of this presentation as well as the
reliance upon any opinion or statement contained herein or for any omission.
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Thank you
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Bank Indonesia
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Matahari Department Store Tbk
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