3 2024_Hero Q3 Press Release (Eng) v5.pdf

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PRESIDENT DIRECTOR’S STATEMENT


Introduction
The Company delivered improved financial results for the first nine months of 2024, largely
driven by strong sales and profit growth of Guardian Health and Beauty. IKEA's performance
over the period was impacted by weak furniture demand. Nevertheless, its losses narrowed
from the same period of last year due to effective cost control measures.


Company Performance
The Company reported net revenue of Rp 3,380 billion for the first nine months, a 3% increase
compared to the same period in 2023. Profit from continuing operations reached Rp 24 billion,
representing a significant turnaround from the Rp 261 billion loss recorded in the prior
comparable period, supported by profit growth in Guardian Health and Beauty as well as
reduced losses in IKEA. Including gains from divestment of the Hero Supermarket operations
and the sale of non-core properties, total reported profit for the period was Rp 184 billion, up
from Rp 19 billion in the prior period.


Guardian Health and Beauty delivered double-digit growth in like-for-like sales and strong
profit increases over the period, benefiting from higher foot traffic in premium malls and tourist
locations. Guardian remains committed to enhancing its value proposition through product
range optimisation and expanding omnichannel presence for improved customer accessibility.


IKEA’s sales declined for the first nine months of 2024 as a result of reduced foot traffic in
offline stores. Implementation of effective cost-saving measures led to narrowing losses
compared to the same period last year. IKEA remains focused on driving sales through
initiatives such as improving store commerciality, optimising store layout, and refining
shopping tools. Ongoing efforts to improve product availability include reviewing the import
model, increasing local sourcing, and making supply chain adjustments, supported by a more
effective marketing strategy to drive local relevance.


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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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Business Update
The Company completed the divestment of its Hero Supermarket segment to its affiliate, PT
Hero Retail Nusantara, at the end of June 2024. Following this transaction, the Company’s
operations fully pivot to the Guardian and IKEA businesses in Indonesia.


During the first nine months, the Company also completed the sale of three non-core properties,
further strengthening its financial position.


Prospects
The Company expects the Health and Beauty segment to maintain its positive momentum,
while uncertainty regarding the recovery of the Home Furnishings business remains. With a
sharpened business focus, the Company is well positioned for sustainable growth in the
medium to long term.




Hadrianus Wahyu Trikusumo
President Director
31st October 2024


For further information contact:
Hadrianus Wahyu Trikusumo, President Director
PT Hero Supermarket Tbk
Tel: +62-21-8378 8388
E-mail: extcomm@hero.co.id
                                                    - end -




                                          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