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20250307_LPPF_Laporan Informasi dan Fakta Material_31867188_lamp1.pdf
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7 March 2025 FY/4Q 2024 Earnings Call LPPF.IJ / LPPF.JK
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Agenda
No Topic Page
1 Executive Summary 3
2 Macroeconomic Update 4–6
3 Financial Performance 7 – 11
4 Strategy Update 12 – 19
5 Closing Remarks 20 – 21
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Executive Summary
Results in 2024: Preserved EBITDA despite soft macro economic environment
FY24 Sales: IDR 12.3Tn (-2.0% vs. FY23; -1.7% SSSG • Macroeconomic: Challenging market continued in 4Q24, with muted consumer spending.
vs. FY23), with muted consumer spending. Results
consistent with Lebaran (-2.4% SSSG) and Q4 SSSG • Merchandising: Flat apparel sales (0% SSSG) while non apparel sales dragged performance
(-2.0% SSSG) performance. (-6% SSSG). Enlarged space and coverage of pareto consignment vendors. Developed private
label brands to appeal to younger, modern shoppers. SUKO expanded to 79 stores and ZES
launched in 4Q24, targeting the fashion-conscious.
Gross Margin: 34.6% (vs. FY23: 34.2%) driven by
improved freshness. DP mix remained the same. • Store Optimization: Trimmed 13 underperforming stores for a healthy portfolio of 142 stores,
resulting in IDR 13Bn EBITDA uplift.
EBITDA: IDR 1,398Bn (vs. FY23: IDR 1,411Bn), 0.9% • Omni-channel: Increased online assortment by onboarding CV brands (which contributed 41%
decline vs. similar period last year despite OPEX of total MDS CV sales) to our digital channel. Further expanded marketplace reach.
drop of 1.0%.
Focus Ahead in 2025: Cautious staged investments subject to milestones
Net Income: IDR 828Bn (vs. FY23: IDR 675Bn), 22.5% • Merchandise Assortment Development: Enhancing private label offerings and exploring
higher than FY23 mainly due to reduction in interest new categories, such as home and living. Creating products targeted at price-sensitive
expense and depreciation. consumers, with a focus on competitive pricing and effective promotions.
• Specialty Store Launches: Opening new standalone Suko and Zes stores.
Inventory: IDR 0.7Tn (vs. FY23: IDR 0.8Tn), from
faster turns (2.1 to 2.6x). Also ending fresher • Store Renovation: Refurbishing select key A-stores to enhance their appeal.
(contribution of 0-6 months from 63% to 80%). • Store Portfolio Optimization: Consolidating store network, downsizing where necessary, and
opening new locations to boost overall sales productivity and profitability.
Net Cash: IDR 399Bn (vs. 2023: Net Debt IDR 42Bn), • Improved Economics: Focusing on optimization in areas such as rental, labor, and
with unutilized facility IDR 1.7Trn.
merchandising (in the form of reduced product costs, brand rationalization, increased
private label mix, and optimized space allocation).
Equity: IDR 326Bn (vs. 2023: IDR 31Bn), and
commitment on dividend payout 50% remains. • Technology Upgrades: Enhancing core IT applications, bolstering cybersecurity, and
investing in technology to support improved omni-channel capabilities.
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142 Stores
79 Cities
600+ suppliers
93% local
8,095
employees
Macroeconomic
Update
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Macroeconomic Environment
Households no longer appear to be net savers
Change in Deposits, Loans, and Net Bank Balance
YoY Change in IDR Tn
400
300
200
100
+84.6
0
-14.0
-100 +98.7
— Net bank balance (NBB), YoY change:
Change in deposits
Change in loans
-200
-300
Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 Jan-24 Oct-24
Source: BI, OJK, BCA Economic Research
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Macroeconomic Environment
Challenges remain post-pandemic, reflected across sectors
Retail Sales of Apparel and Footwear Car Sales Sales of Full-Service Restaurants
In trillion IDR ‘000 units In trillion IDR
200 1,200 600
100 600 300
0 0 0
2019 2020 2021 2022 2023 2024* 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024*
Offline Sales Digital Sales
Source: Euromonitor International Source: Gaikindo, Astra International Source: Euromonitor International
*Forecast
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142 Stores
79 Cities
600+ suppliers
93% local
8,095
employees
Financial Performance
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Financial Highlights
Profitability improved with higher gross margin (40 basis points) and lower financial costs
Q4 Full Year
In IDR Bn
2024 2023 % Growth 2024 2023 % Growth
Gross Sales 2,828 2,937 -3.7% 12,307 12,552 -2.0%
SSSG % -2.0% -2.9% -1.7% -2.4%
Gross Profit 974 939 3.7% 4,253 4,295 -1.0%
Gross Margin % 34.4% 32.0% 34.6% 34.2%
OPEX (657) (663) -1.0% (2,855) (2,884) -1.0%
EBITDA 317 275 15.0% 1,398 1,411 -0.9%
EBITDA Margin % 11.2% 9.4% 11.4% 11.2%
Net Income (Loss) 205 45 358.1% 828 675 22.5%
Net Income Margin % 7.3% 1.5% 6.7% 5.4%
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Financial Highlights
Net cash at IDR 399bn with unused Loan Facility at IDR 1.7Tn
ASSET LIABILITIES & EQUITY
In IDR Bn Dec-24 Dec-23 In IDR Bn Dec-24 Dec-23
Cash and Bank Balance 399 508 Bank Loan - 550
Trade Receivables 40 60 CV Trade Payables 469 770
Inventories 728 793 DP Trade Payables 567 457
Right-of-Use Assets 2,177 2,509 Lease Liabilities 2,843 3,051
Other Assets 1,193 1,306 Other Liabilities 935 1,022
Fixed Assets 604 705 Equity 326 31
Total Asset 5,141 5,880 Total Liabilities & Equity 5,141 5,880
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Sales Performance
Performance relatively stronger for core stores, particularly outside Greater Jakarta
Store Performance (SSSG) FY 2024 Store Performance by Geography (SSSG) FY 2024
Gross Sales by
Region (%)
Greater Jakarta 21.9%
Outside
Java Java ex Jakarta 34.5%
-0.2% Outside Java 43.6%
Total Sales 100.0%
Regular stores Watchlist stores
-1.3% -1.7% -5.5%
Greater Java
Jakarta ex Jakarta
-6.3% -0.6%
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Capital Allocation
Propose dividend and buyback while maintaining sufficient reserves for business growth
Capex Plan Dividend*
New store opening Proposed 81.7% Dividend Payout
Store refurbishment IDR 300 /share or IDR 677 Bn
Technology & maintenance
Exploring new concepts
Acquisition Strategic Buyback*
No investment planned Proposed IDR 150 Bn allocation
*subject to AGMS Approval
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KEY FOCUS
Merchandise Loyalty & Brand Store Network Omni-channel
Full Potential Development Optimization Expansion
Operational OPEX Environmental,
Excellence Optimization Social, &
Corporate
Governance
Strategy Update
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2024 Update
Continued to make progress on strategic initiatives
Merchandise Full Potential Loyalty & Brand Development Store Network Optimization Omnichannel Expansion
Key private labels rebranded with Brand awareness improved with Store space rationalization Onboarded 68 CV brands (41%
improved product and pricing growth of social media content completed with 13 stores closed of total CV offline sales)
architecture viewers by 58% and select downsizing
Broadened presence to include
SUKO sales points in 79 locations Higher engagement achieved Opened flagship store, with TikTok Shop to help drive
via community activations, refreshed and curated customer marketplace sales
New private label ZES launched, including influencers and journey
present in 56 stores at year-end notable key opinion leaders Back-end technology updated,
Store portfolio review to ensure with new Warehouse and Order
Inventory well managed with aged Increased sales contribution optimized occupancy cost and Management System to
stock >6 months reduced by 56% from active loyalty members of lean operations streamline operations
8.2 Million, reaching 80% of sales
Core CV brands grew by 6% driven Improved economics through
by greater coverage, larger display higher margins, introduction of
space fees, as well as headcount and
OPEX optimization
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2025 Priorities
Merchandise Store Network Omnichannel Analytics & Improved
Full Potential Optimization Expansion Technology Upgrades Economics
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Merchandise Full Potential
Continue to focus on private label while exploring new categories and brands
Refresh & Grow Private Label New Categories & Brands
Revamp private label (Nevada, Cole, Connexion, St Yves, Expand new categories, like home and living
Annisa, Little M)
Develop new brands to fill in the merchandising
Expand emerging brands (Suko & ZES) architecture whitespace
Targeted pricing & promotions, through value-based Diversify product range in terms of design, colors, price
pricing and strategic promotions point, and size
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Store Network Optimization
Upgrade existing stores and develop specialty format
Elevate Core Matahari Stores Specialty Stores and New Concept Development
Selective store opening with Renovation of up to 13 strategic Launch specialty stores for Other new store concepts
enhanced customer journey stores for improved shopping new private label brands are under development to
and higher profitability experience and targeting to expand presence beyond cater to various income
threshold higher productivity existing Matahari stores and segments and shopping tastes
malls
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Omnichannel Expansion
Expand channel and range while improving engagement
Better Engagement and
Conversion
• Integrate Shop & Talk platform
Range Expansion and digital marketing for
improved customer experience,
increased penetration, and
• Replicate offline CV assortment higher traffic
Channel Expansion through fulfilment-from-store
• Strengthen existing
model for both Matahari.com
marketplace channel with
• Explore Shop-in-Shop with and various online
enhanced live streaming and
micro/nano KOLs & affiliates marketplaces
video content
to drive community sales
• Evaluate product category
• Improved offline to online
• Launch dedicated private expansion to stimulate
conversion by enabling app to
label online store to enhanced online sales
support offline functions
monetize brand equity
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Analytics and Technology Upgrades
Invest in modernising existing infrastructure while exploring new technology
• Upgrade Core Merchandising and Finance
Applications: Modernise existing applications to
enable advanced reporting capabilities, leveraging
cutting-edge data analytics tools for deeper insights.
• Strengthen Cybersecurity: Fortify digital security
measures to safeguard data integrity and protect
against emerging threats.
• Explore Innovative Data Capture Technologies: Pilot
new technologies to enhance data collection,
enabling richer insights and more accurate decision-
making.
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Improved Economics
Remain profit focused through cost optimisation and improved productivity
Product Costs and Store Productivity
Inventory Optimization Improvement
Select cost-effective product designs and materials Enhance rental agreements
Consolidate spend for greater efficiencies Maximize space allocation and store layout efficiency
Streamline sourcing and ordering process Optimize in-store labor costs
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142 Stores
79 Cities
600+ suppliers
93% local
8,095
employees
Closing Remarks
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Closing Remarks
Despite muted consumer spending, we remain focused on improving profitability
Sales of IDR 12.3 Tn (-2.0% YoY) for FY24 affected by muted consumer spending.
EBITDA of IDR 1.4 Tn (-0.9% YoY) and Net Profit of IDR 828 Bn (+22.5% YoY) reflects our focus on profitability.
Merchandising: Performance dragged by non apparel (-6% SSSG). Apparel focus of private label gained momentum last year with Suko expansion
and Zes launched in Q4. Further strengthening of private label brands is planned for 2025 with expansion in categories such as home and living.
Sharper pricing and promotion will be tested in response to subdued macro economic environment.
Store optimization: Strengthened portfolio with 13 store closures in 2024. Continuing to monitor stores for rationalization and downsizing, while investing
in growth by renovating up to 13 strategic A-stores as well as opening new stores, particularly specialty stores for Suko and Zes.
Digital: In 2024 expanded channel reach and increased product assortment on Matahari.com through increased CV participation. Plan to further
increase CV assortment and enhance engagement while improving profitability.
Improved economics: Continue to focus on cost savings from rental, headcount optimization and merchandising.
IT: Plan to upgrade necessary core system, strengthen cybersecurity, and procure technology for improved omnichannel given past underinvestment.
Corporate actions: Propose dividend of IDR300/share and share buyback of IDR150Bn (subject to shareholders approval).
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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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Matahari Department Store Tbk
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