Back to announcement
20250730_LPPF_Laporan Informasi dan Fakta Material_31928484_lamp2.pdf
Other Text extracted LPPFSource file signed link, expires in 15 minutes
Extracted text 23
Page 1
31 July 2025 1H/2Q 2025 Earnings Call LPPF.IJ / LPPF.JK
Page 2
Agenda
No Topic Page
1 Executive Summary 3
2 Macroeconomic Update 4–8
3 Financial Performance 9 – 14
4 Strategy Update 15 – 19
5 Closing Remarks 20 – 21
2
Page 3
Executive Summary
PERFORMANCE COMMENTARY
Income Statement
Weaker macroeconomic environment contributed to underperformance in 1H25:
1H25 Sales: IDR 6.6Tn (-9.2% vs. LY; -6.4% SSSG vs. LY).
• The Purchasing Managers’ Index fell below the 50 threshold in Q2, signaling a contraction in
Sales performance has not recovered and continues
manufacturing activity and continued uncertainty in the broader economic outlook.
to lag behind expectations after Lebaran.
• Wage growth decelerated at the start of the year, accompanied by an increase in the proportion of
Gross Margin: 35.0% (vs. 1H24: 34.9%) with DP margin workers earning below the minimum wage, suggesting strain in household income levels.
+0.8 p.p and CV +0.1 p.p; DP mix 30.0%, -0.1p.p vs LY. • Muted income growth has led to a persistent decline in consumer credit and bank deposits, further
weighing on the Consumer Confidence Index and limiting purchasing capacity.
EBITDA: IDR 872Bn (vs. 1H24: IDR 988Bn), -11.7% vs LY,
• Consumer discretionary spending continues to shift away from fashion, with additional pressure from
despite a 7% reduction in OPEX compared to LY.
unregulated Chinese imports, which remain a significant challenge for domestic fashion retailers.
Net Income: IDR 604 Bn (vs. 1H24: IDR 626 Bn), -3.5% vs
LY partially driven by interest expense reduction. STRATEGIC INITIATIVES
Balance Sheet A cautious approach is being adopted amid ongoing macroeconomic uncertainties :
• Improved Economics: Efficiencies underway across space and rental costs, supported by ongoing
Inventory: IDR 769Bn (vs. 1H24: IDR 773Bn). Contribution
landlord collaboration. Supplier network and purchasing processes being streamlined to enhance cost
of 0-6 months inventory increased from 74% to 77% competitiveness. Labor productivity initiatives gaining traction, delivering early signs of improvement.
Net Debt: IDR 85Bn (vs. 2024: IDR 189Bn) with unutilized • Assortment Development: Continued CV portfolio optimization, including clearer designation of fashion
facility of IDR 1.4Tn. zones and deeper joint business planning. New private label development focused on targeted
categories to drive differentiation and margin. Net pricing strategies implemented (CV and private
Cash Flow label), showing early positive impact.
• Store Network Optimization: seven underperforming, non-strategic stores identified for closure (EBITDA
Capex: IDR 63Bn, mainly for store network expansion,
impact: ~IDR 1 Bn); four closures in 1H25. Selective expansion of SUKO and ZES independent formats.
renovation, and maintenance.
• Omnichannel: Ongoing efforts to address foundational digital issues, including interface, platform
Share Buyback: 31 Mn shares up to Jun’25 equivalent stability, product display integrity, and operational bottlenecks. Working with top CV brands to build
to IDR 63 Bn. inventory depth for online fast-moving SKUs and expanded marketplace fulfilment from stores (FFS).
Improving digital engagement across various touchpoints.
3
Page 4
142 Stores
79 Cities
600+ suppliers
93% local
7,655
employees
Macroeconomic
Update
4
Page 5
Manufacturing Context
Industrial activity contracts, reflecting mounting concern over economic fragility.
Purchasing Managers’ Index %YoY in Quarterly Production Index of Medium and Large Manufacturing
Manufacturing activity contracted in 2Q25 Production growth was negative in 1Q25
%
60.0 4.0% 3.5%
51.3
50.0 0.0%
-0.4%
46.9
40.0 -4.0%
Dec
Dec
Apr
Nov
Apr
Nov
Apr
Jun
Jun
Jun
Feb
Jul
Oct
Feb
Jul
Oct
Feb
May
Mar
May
Mar
Mar
May
Aug
Sep
Aug
Sep
Jan
Jan
Jan
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2023 2024 2025
2023 2024 2025
Source: S&P Global Source: Statistics Indonesia
5
Page 6
Wage growth and quality
Wage growth is slowing and quality of wages is declining.
%YoY Change in Wage Growth %Employee Earning Below/Above Minimum Wage
Growth slowdown accelerated in Feb 2025 to 1.8%, down 1.0 p.p. vs Aug’24 Portion of employees earning below minimum wage growing to 53%
% %
14.0% 60
12.2%
50.6 52.8
49.4 47.2
7.0% 45
1.8%
0.0% 30
Aug Feb Aug Feb Aug Feb 2022 2023 2024 2025
2022 2023 2024 2025
Above Minimum Wage Below Minimum Wage
Source: Statistics Indonesia Source: Statistics Indonesia
6
Page 7
Consumer Savings and Confidence Index
Tightening household liquidity and confidence signal mounting consumer strain.
YoY in Individual Loans/Deposits Consumer Confidence Index
Consumer savings has been declining CCI dropped partly due to job availability concerns
IDR Trn
160
600
193
140
400
131.3
123.0
124.1
200 120
117.8
278
112.1
133
0 100
(2) Consumer Confidence Index (CCI) 94.1
Change in Loans Change in Deposits Job Availability Index
Job Availability Expectation Index
-200 80
Jan
Mar
Jan
Mar
Jan
Mar
Feb
May
Aug
Sep
Feb
Feb
May
Aug
Sep
Dec
Jul
Oct
Dec
Apr
Jul
Oct
Apr
Apr
Jun
Nov
Jun
Nov
Apr
Nov
Des
Apr
Nov
Des
Apr
Mei
Mei
Jun
Feb
Juli
Ags
Okt
Feb
Juli
Ags
Okt
Feb
Mar
Mar
May
Sept
Sep
Mar
Jan
Jan
Jan
Juni
Juni
2023 2024 2025 2023 2024 2025
Source: Bank Indonesia Source: Bank Indonesia
7
Page 8
Apparel Spend and Imports
Spending shifts away from fashion; pressure from cheap, illegal Chinese imports continues.
Spend proportion Apparel Import from China
Fashion spend portion in avg YTD Difference in export-import records growing to USD 54 Mn in May
Jun fell 1.3 p.p. vs 2023 (-4% vs 2024) Million USD
%
100
10.1 9.2 8.8
82 84 84 85
73 73
68
39.5 38.2 41.5 63 61
57 54
51
50 46
13.7
17.1 12.9
13.0 20.0 16.6
20.3 19.0 20.3
-
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
1H23 1H24 1H25
2024 2025
Restaurants Supermarkets Household
China's Export to Indonesia Difference Indonesia's Import from China
Others Fashion
Source: Bank Mandiri Source: International Trade Centre
8
Page 9
142 Stores
79 Cities
600+ suppliers
93% local
7,655
employees
Financial Performance
9
Page 10
Financial Highlights
Profitability driven by better margin and expenses control.
Q2 H1
In IDR Bn
2025 2024 % Growth 2025 2024 % Growth
Gross Sales 1,922 3,503 -45.1% 6,570 7,233 -9.2%
%DP Contribution 30.6% 28.7% 30.0% 30.1%
%CV Contribution 69.4% 71.3% 70.0% 69.9%
SSSG % -43.1% -25.0% -6.4% -2.8%
Gross Profit 656 1,223 -46.3% 2,303 2,526 -8.8%
Gross Margin % 34.1% 34.9% 35.0% 34.9%
DP Gross Margin % 40.2% 43.9% 43.8% 43.0%
CV Gross Margin % 31.5% 31.6% 31.8% 31.7%
OPEX (647) (754) -14.2% (1,431) (1,538) -7.0%
Personnel Expenses (220) (260) -15.5% (479) (536) -10.7%
Occupancy Expenses (349) (391) -10.5% (744) (778) -4.3%
Marketing Expenses (24) (43) -43.5% (91) (100) -9.7%
Others (53) (60) -12.0% (117) (124) -5.3%
EBITDA 9 469 -98.0% 872 988 -11.7%
EBITDA Margin % 0.5% 13.4% 13.3% 13.7%
Net Income (Loss)* (39) 300 -113.1% 604 626 -3.5%
Net Income Margin % -2.1% 8.6% 9.2% 8.7%
* Reduced interest expense and depreciation helps mitigate 1H25 net income reduction vs. 1H24 10
Page 11
Geographic Sales Performance
Relatively consistent SSSG metrics across regions.
Gross Sales by
Region (%)
Greater Jakarta 22.7%
Outside
Java
Java ex Jakarta 36.3%
Outside Java 41.0%
-6.6%
Total Sales 100.0%
Greater Java
Jakarta ex Jakarta
-6.4% -6.2%
11
Page 12
Financial Highlights
Net debt at 85Bn with unused Bank Loan Facility of 1.4Tn.
ASSET LIABILITIES & EQUITY
In IDR Bn Jun-25 Dec-24 In IDR Bn Jun-25 Dec-24
Cash and Bank Balance 190 399 Bank Loan** 275 -
Trade Receivables 27 40 CV Trade Payables 403 469
Inventories* 704 728 DP Trade Payables 264 567
Right-of-Use Assets 1,894 2,177 Lease Liabilities 2,511 2,843
Other Assets 1,422 1,193 Other Liabilities 958 935
Fixed Assets 549 604 Equity 374 326
Total Asset 4,785 5,141 Total Liabilities & Equity 4,785 5,141
* Contribution of 0-6 months inventory increased from 74% to 77%
** Unutilized facility at IDR 1.4 Trn
12
Page 13
Financial Highlights
Ending cash level similar to last year despite higher share repurchase and dividends.
Cautious capex spending in light of economic condition.
Q2 H1
YTD
In IDR Bn
2025 2024 % Growth 2025 2024 % Growth
Cash Flow from Operating Activities (1,967) (356) 452.7% 688 772 -10.8%
Cash Flow from Investing Activities (34) (35) -2.5% (62) (69) -9.8%
Cash Flow from Financing Activities (643) (250) 156.8% (834) (999) -16.5%
Share Repurchase* (62) (2) 4019.8% (62) (2) 4019.8%
Dividends (668) (452) 47.9% (668) (452) 47.9%
Other Cash Flow for Financing Activities 88 203 -56.8% (104) (545) -81.0%
Cash Increase (Decrease) (2,644) (641) 312.3% (209) (296) (29.6%)
Ending Cash Balance 190 211 (10.1%) 190 211 (10.1%)
* Share buyback: 31 Mn shares up to Jun’25 equivalent to IDR 63 Bn.
13
Page 14
Earnings Risk
Prudent reassessment underway given earnings risk, with heightened cost discipline and
cautious capital deployment.
Implied Gross Profit and Opex for Full Year
P3Y* 1H25 Result Implied FY25 Focus on cost-cutting initiatives:
Metrics
1H % of FY IDR Tn IDR Tn • Labor productivity program
Gross profit 59% – 60% 2.3 ~3.8 • Optimization of marketing
spend
Opex 51% – 53% 1.4 ~2.8 • Rental efficiencies through
active landlord partnerships
Implied FY25 financials based on historical (IDR) >
3.8 Tn
Cautious capital deployment
• Slowdown in expansion of new
concept stores
~1 Tn • Selective on store renovations
2.8 Tn • Stagger IT investments
* Range of past three years
14
Page 15
KEY FOCUS
Improved Assortment Analytics &
Economics Development Technology Upgrades
Store Network Omnichannel
Optimization Expansion
Strategy Update
15
Page 16
Improved Economics
Enhancements in operations, space, and staff productivity.
Brand & space optimization Improvement in labor productivity Efficient sourcing
• Rental efficiencies on track through • Ongoing productivity improvements • Purchasing processes under
active landlord collaboration guided by sales forecasts, with leaner overhaul to strengthen control,
staffing across sales, cashier, and support accountability, and agility
• CV dashboard launched with shared
functions
sales targets to boost brand • Progressing toward centralized
competitiveness and enable joint • CV labor pilot planned to bring direct sourcing to enhance transparency
planning management in-house, streamlining and drive merchandising efficiency
operations and elevating service levels
• Unproductive space to be released in
2H25 for new private label expansion
16
Page 17
Assortment Development
Improved merchandise offering while exploring new categories and brands.
Enhancing Private Label Strengthening CV Collection
• SUKO to expand into new • Continue to optimize CV portfolio.
categories with upcoming launches • Designating CV areas for fashion items
in childrenswear and sleepwear. piloted in select regions to drive
• ZES brand reach extended further freshness and relevance to the
with continued momentum in 2Q25. surrounding community.
• T-Zone successfully rebranded as
AOS, with select designs developed
in partnership with Universal Music.
New Category/ Private Labels Net Pricing and Promotion
• New category launches • Net pricing introduced in select
scheduled rollout in select categories, improving value
strategic stores. perception and driving stronger
inventory turnover.
• Planned introduction of new
private label brands in targeted • Store-wide promotions elevated, with
locations. greater CV brand participation in
events like Intimate Fair, Gen Z
specials, and Matahari Rewards
campaigns.
17
Page 18
Store Network Optimization
Carefully and selectively managing store network portfolio.
Specialty Store Development
• SUKO store opening in 1H25 well received by
customers.
• Plan to open ZES independent store.
Redesign Core Matahari Stores
• Continue to improve our customer experience.
• On track to execute some renovations in
selective stores.
• To explore opportunities for new locations.
Watchlist Stores
• On track to close seven unprofitable stores
(four closed in 1H25).
18
Page 19
Omnichannel Expansion
Continuing improvement in assortment accessibility and digital engagements.
Resolving foundational issues Assortment expansion
• Interface improvements, with • Strengthening CV brand onboarding, with a focus on
M.Com platform migration to deepening online inventory for fast-moving SKUs.
enhance UI/UX and resolve • Marketplace FFS expanded, with redesigned touchpoints to
inconsistencies in product displays. support greater depth in high-demand SKU allocation.
• Shop & Talk contribution rising, driven by enhanced back-end
• Platform stability to be achieved systems and increased customer engagement by MDS sales
with upgraded system associates.
performance to address lag and
improve overall responsiveness.
• Content integrity to be
Better digital engagement
strengthened by resolving listing Channel expansion
inaccuracies to prevent lost sales
• Shop & Talk unified under a single contact point,
and reinforce trust in the platform.
streamlining customer engagement across stores.
• Dedicated digital channels launched for Nevada and
• Operational flow redesigned by SUKO to strengthen brand visibility online.
reworking FFS touchpoints to
support deeper, targeted Customer Engagement and Loyalty
inventory allocation and reduce • Integrated digital media spend for cross-channel impact.
order cancellations from process
delays. • To pilot loyalty points redemption via M.com app to boost
downloads and omni-customer growth.
Page 20
142 Stores
79 Cities
600+ suppliers
93% local
7,655
employees
Closing Remarks
20
Page 21
Closing Remarks
The subdued consumer environment warrants a more measured and cautious approach.
MACRO • Indicators (e.g., PMI, CCI, wage growth) continue to signal a deteriorating economic environment and softening demand.
CHALLENGES • Mounting pressure on the middle class has contributed to a sustained, multi-year shift in spending away from fashion.
• Beyond demand-side headwinds, the market is also facing supply-side disruptions from unregulated Chinese imports.
IMPACT ON OUR • 1H25 sales decreased by 9.2% to IDR 6.6Tn, with SSSG -6.4%, reflecting continued softness post-Lebaran.
PERFORMANCE • Despite a 7% reduction in OPEX, 1H25 EBITDA fell 11.7% to IDR 872Bn, while Net Income decreased by 3.5% to IDR 604Bn.
PRIORITIZING Cost Efficiency Initiatives:
EXECUTIONAL • Enhanced staff productivity through refined labor models.
• Streamlined sourcing operations via consolidated procurement improvements.
EXCELLENCE
Omnichannel Expansion:
• Upgrading M.com platform performance to support a more seamless user experience.
• Strengthening digital engagement and SKU availability to accelerate omni-customer growth.
Store Network Optimization:
• Executing targeted closures of non-performing stores to improve overall profitability.
CAUTIOUS Store Network Strategy:
APPROACH • Early traction from independent store launches in 1H25, with a more selective rollout planned in 2H25.
Assortment Development:
• Measured approach to new private label launches in 2H25, with scale calibrated to consumer response and brand readiness.
Capital Expenditure Discipline:
• Prudent capital allocation, applied to major renovations and phased rollout of technology upgrades.
21
Page 22
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.
22
Page 23
Thank you
Names mentioned 3 people and organisations named in the text · linked when the evidence is strong
unresolved
org
Bank Indonesia
p.7 ×2
unresolved
org
Matahari Department Store Tbk
p.22 ×4
Extraction attempts how the parser did, and what it refused
Nothing structured was extracted from this document — the attempts below say why.
No extraction attempted yet.