Back to announcement
20250429_LPPF_Laporan Informasi dan Fakta Material_31879089_lamp2.pdf
Other Text extracted LPPFSource file signed link, expires in 15 minutes
Extracted text 21
Page 1
29 April 2025 1Q 2025 Earnings Call LPPF.IJ / LPPF.JK
Page 2
Agenda
No Topic Page
1 Executive Summary 3
2 Macroeconomic Update 4–7
3 Financial Performance 8 – 12
4 Strategy Update 13 – 17
5 Closing Remarks 18 – 19
2
Page 3
Executive Summary
PERFORMANCE COMMENTARY
Income Statement
MDS’ Lebaran underperformance driven by:
Q125 Sales: IDR 4.6Tn (24.6% vs. Q124; 28.6% SSSG
• Weak consumer spending power, reduced savings, and cheap illegal import from China sold online
vs. Q124). Q125 growth driven by the shift of
and in traditional markets resulting in decline in proportion of fashion spend.
Lebaran period. Lebaran SSSG was -4.3% with soft
consumer spending. • Lower Lebaran homecoming travelers (5% decline) affected by higher layoffs and issues with THR
payments, especially cases of THR not paid at all.
Gross Margin: 35.4% (vs. Q124: 34.9%) driven by
• Sales contribution further concentrated in Java, with softer performance in ex-Java regions.
improved freshness, higher AUR and basket size.
• Non-apparel sales under-indexed relative to historical averages and against apparel growth.
EBITDA: IDR 863Bn (vs. Q124: IDR 519Bn), 66.1% higher
vs LY, with flat OPEX vs Q124. • Higher selectivity in bazaar participation reduced coverage and contributed to decline in sales.
Net Income: IDR 643Bn (vs. Q124: IDR 326Bn), 97.3%
higher vs LY.
STRATEGIC INITIATIVES
Balance Sheet • Improved Economics : Accelerating targeted cost efficiency program in response to Lebaran softness,
Inventory: IDR 0.8Tn (vs. 2024: IDR 1Tn), from faster focused on optimizing occupancy costs, enhancing space productivity, driving sourcing efficiencies,
turnover (2.2 to 2.7x). Contribution of 0-6 months and rationalizing labor expenses.
inventory increased from 74% to 78%. • Assortment Development: Further improve CV productivity, private label collection (particularly SUKO and
ZES with expanded collection and greater coverage), and introduce new categories in underdeveloped
Net Cash: IDR 2.8Tn (vs. 2024: Net Cash IDR 853Bn), areas such as home and living.
with unutilized facility of IDR 1.7Tn.
• Store Network Optimization: Continue with disciplined store expansion and rationalization. Plan to close 7
Cash Flow from Investing stores among the 24 on watchlist. Opened 1 Matahari store at Indramayu and 1 monobrand store SUKO
at Millenium Mall, with plans to open additional SUKO and ZES monostores.
Capex: IDR 12.6Bn, mainly for store network
expansion and maintenance. • Omnichannel: Improved profitability with greater sales and cost discipline. Intend to grow digital sales
by doubling down on CV onboarding and expanding fulfilment from stores on 3rd party marketplace.
3
Page 4
143 Stores
80 Cities
600+ suppliers
93% local
8,105
employees
Macroeconomic
Update
4
Page 5
Consumer Spending
Lower spend on fashion/clothing partially caused by decline in spending
YoY Change in Individual Loans/Deposits Spend proportion Clothing Retail Sales Growth in the 3 months to Lebaran
IDR Trn % -2% (M = Lebaran month)
9.3 9.1 14%
9.9
214 39.9 38.1 41.4
124
128
89
78 84
56
41 27
25
299
266 14.6 13.1
237 225 207 196 199 186 178 162
18.0
117 127 131
80
(81) (88)
(38)
12.3 19.0 17.1
(141)
-2%
20.0 19.0 19.3
-6%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan* Feb* 2023 2024 2025
2024 2025
2023 2024 2025
Restaurants Supermarkets
Household Others
Change in Loans Change in Deposits Fashion
Source: Bank Indonesia, processed Source: Bank Mandiri, processed Source: Bank Indonesia, processed
5
Page 6
Consumer Spending
Spending decrease in line with lower mudik activities, higher layoffs, and more THR issues
Actual Lebaran Homecoming (Mudik) Travelers Holiday Allowance (THR) Complaints
Million people # of complaints
-4.7% 2025 1,446 485 452 2,383
162 2024 929 383 227 1,539
THR not paid at all THR not paid as regulated THR not paid on time
155
Monthly Average Number of Layoffs
# of people
9,568
7,445 7,855
6,556
4,132
2024 2025 Q1 Q2 Q3 Q4 Dec'24-Feb'25
2024 2025
Source: Ministry of Transportation Source: Ministry of Manpower, processed
6
Page 7
Competition
Challenging trading environment affecting apparel retail sales
Apparel Import from China Retail Sales of Apparel
Million USD Trillion IDR
100 200
82
73 73
67 68
63 61
56 55 57 54
51
50 100
- -
Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 2019 2020 2021 2022 2023 2024*
2024 2025
Offline Sales
Indonesia's Import from China
Digital Sales
Gap of China's Export to Indonesia and Indonesia's Import from China
Export China to Indonesia
Source: Bank Mandiri, International Trade Centre Source: Euromonitor International
* November 2024 estimate
7
Page 8
143 Stores
80 Cities
600+ suppliers
93% local
8,105
employees
Financial Performance
8
Page 9
Financial Highlights
Profitability driven by better margin and expenses control
Q1
In IDR Bn
2025 2024 % Growth
Gross Sales 4,648 3,731 24.6%
SSSG % 28.6% 34.6%
Gross Profit 1,646 1,302 26.4%
Gross Margin % 35.4% 34.9%
OPEX (784) (783) 0.1%
EBITDA 863 519 66.1%
EBITDA Margin % 18.6% 13.9%
Net Income (Loss) 643 326 97.3%
Net Income Margin % 13.8% 8.7%
9
Page 10
Financial Highlights
Net cash at IDR 2.8Tn with unused Loan Facility at IDR 1.7Tn
ASSET LIABILITIES & EQUITY
In IDR Bn Mar-25 Dec-24 In IDR Bn Mar-25 Dec-24
Cash and Bank Balance 2,834 399 Bank Loan - -
Trade Receivables 331 40 CV Trade Payables 1,669 469
Inventories 788 728 DP Trade Payables 917 567
Right-of-Use Assets 2,042 2,177 Lease Liabilities 2,692 2,843
Other Assets 1,221 1,193 Other Liabilities 1,490 935
Fixed Assets* 558 604 Equity 1,006 326
Total Asset 7,774 5,141 Total Liabilities & Equity 7,774 5,141
* New Capex for Q1 2025 of IDR 12.6 Bn. 10
Page 11
Lebaran Sales Performance*
Softer performance outside Java regions, with Sales contribution of 38.7%
Gross Sales by
Region (%)
Outside Greater Jakarta 21.7%
Java Java ex Jakarta 39.6%
-6.1% Outside Java 38.7%
Total Sales* 100.0%
Greater
Jakarta
-2.8%
Java
ex Jakarta
-3.4% *-3.7% SSSG excluding bazaar 11
Page 12
Capital Allocation
Dividend and buyback plan approved to maintain sufficient reserves for business growth
Capex Plan Dividend
New store opening Approved 81.7% Dividend Payout
Store refurbishment IDR 300 /share or IDR 668 Bn
Technology & maintenance
Exploring other retail concepts Paid on 29 Apr’25
Cautious outlay in light of
challenging environment
Acquisition Strategic Buyback
No investment planned Approved IDR 150 Bn allocation
Max 10% of total outstanding shares
12
Page 13
KEY FOCUS
Improved Assortment
Economics Development
Omnichannel Store Network
Expansion Optimization
Strategy Update
13
Page 14
Improved Economics
Enhancement in operations, space, and staff productivity
Brand & space optimization Improvement in labor productivity Efficient sourcing
• Driving sales productivity improvement • Improve Matahari sales associate • Streamlining sourcing operations
through data-led space optimization productivity through workload analysis with key suppliers to enhance
quality and competitiveness
• Pursue rental efficiencies through active • Collaboration with consignment vendors for
landlord partnerships ways of improvement in staff productivity
14
Page 15
Assortment Development
Continue to improve merchandise offering while exploring new categories and brands
Strengthening CV Collection Enhancing Private Label Developing New Category
• Collaborate for exclusive • Create trend and community • Address under-indexed
collection at Matahari spaces to raise awareness of brands non-apparel segment by
• SUKO: Sub-brand SUKO GO launch in developing additional
• Recruit new CV brands for
Jan’25; category extension into categories including Home
more fashionable assortment
Children and Sleepwear in Q4 2025 and Living
• Offer vendor guidance to
• ZES: Extending ZES Men and Women • Extend collection into
enhance product curation
Collection to more outlets Matahari core and SUKO
and collection performance
monostores
15
Page 16
Store Network Optimization
Upgrade existing stores and develop specialty format, while optimizing store portfolio
Redesign Core Matahari Stores
• Explore alternative formats and designs in
progress
• Renovate up to 13 stores on plan for better
shopping experience and higher productivity
Specialty Stores Development
• SUKO: Launched 1 SUKO monostore in
Feb’25; SUKO monostore expansion will
accelerate starting Q2 2025
• ZES: Launch first ZES store in 3Q25, with
further rollout in 4Q25
Watchlist Stores
• Continue to monitor watchlist stores, with
closure planned for 7 stores.
16
Page 17
Omnichannel Expansion
Expanding assortment accessibility and better digital engagements
Assortment accessibility expansion Better digital engagement
Onboard more CV brands Social media enhancement
• Develop infrastructure for seamless • Enhance livestreaming and improve
integration to onboard CV brands effectively consistency across platforms
• Provide value-added analytics for online • Launch livestreaming on M.com
sales
Expand and strengthen fulfilment from stores Customer Engagement and Loyalty
• Store-fulfilment to enable next-day • Introduce affiliate and referral program on
delivery M.com
• Expand FFS to third-party marketplace to • Drive repeat purchases through targeted re-
improve access and delivery SLA engagement initiatives
• Rollout enhanced Shop & Talk platform • Start using M.com App at stores for Loyalty
across stores redemption to improve app engagement
17
Page 18
143 Stores
80 Cities
600+ suppliers
93% local
8,105
employees
Closing Remarks
18
Page 19
Closing Remarks
Q1 results generated from soft Lebaran; progress on key initiatives continues
Quarterly Performance
Q125 Sales: IDR 4.6Tn (24.6% vs. Q124; 28.6% SSSG vs. FY24) driven by calendar shift of Lebaran; Lebaran SSSG -4.3% due to softer consumer
spending.
EBITDA: IDR 863Bn (vs. Q124: IDR 519Bn), grew 66.1% with OPEX maintained similar to LY.
Dividend of IDR 300 per share (81.7% Payout Ratio) approved. Strategic buyback of IDR 150 Bn approved.
Cautious capital outlay in light of challenging environment.
Strategic Initiatives
Improved Economics: Store productivity improvement is focused on space optimization and labor productivity improvement. The improvement
is strengthened by collaboration with CV and developers. Product cost is optimized by streamlining sourcing operations.
Assortment Development: Strengthening CV Collection through CV collaboration and enhanced collection. Private label brand, SUKO and ZES
gained momentum with SUKO achieving (73% growth at Lebaran), supported by the launch of SUKO GO. SUKO plans to enter children segment
later in the year. Category expansion underway with Home and Living category present in 6 stores by year end.
Store Network Optimization: Renovating up to 13 stores on plan and exploring alternative formats and designs. Growth opportunity of new
concepts: monobrand store SUKO and ZES. Portfolio optimization via closure on track with 7 stores for 2025.
Omnichannel: Progress continued for assortment accessibility through CV onboarding and expansion of FFS for third party marketplace. Digital
engagement to be improved by expanding existing livestream and loyalty programs development.
19
Page 20
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.
20
Page 21
Thank you
Names mentioned 5 people and organisations named in the text · linked when the evidence is strong
unresolved
org
Bank Indonesia
p.5 ×2
unresolved
org
Ministry of Transportation
p.6
unresolved
org
Ministry of Manpower
p.6
unresolved
org
Matahari Department Store Tbk
p.20 ×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.