Back to announcement
20241029_LPPF_Laporan Informasi dan Fakta Material_31750534_lamp2.pdf
Other Text extracted LPPFSource file signed link, expires in 15 minutes
Extracted text 19
Page 1
30 October 2024 LPPF.IJ / LPPF.JK 9M/3Q 2024 Earnings Call
Page 2
Agenda
No Topic Page
1 Executive Summary 3
2 Macroeconomic Updates 4–5
3 Financial Performance 6–9
4 Strategy Updates 10 – 15
5 Closing Remarks 16 – 17
2
Page 3
Executive Summary
• Macroeconomic environment: Continued weakness in the economy with deflation
Sales: IDR 9.5Tn (-1.4% vs. 9M23; -1.6% linked to decline in purchasing power and PMI below 50 reflecting contraction.
SSSG vs. 9M23), with continued muted
consumer sentiment. • Merchandising: Strengthening internal capabilities with fresh talent. Optimizing
space for CV to improve productivity and releasing space for private label and
Gross Margin: 34.6% (vs. 9M23: 34.9%) other categories. SUKO expansion continues along with the introduction of new
driven by higher promotion. private label brands.
EBITDA: IDR 1,081Bn (vs. 9M23: IDR • Marketing: Conducting market studies and applying insights across KOLs, social
1,136Bn), 4.8% decline vs. LY while OPEX media, community engagements, and events. Driving awareness of PL brands and
decreased by 1.0%. positioning them to attract modern and younger customer base.
Net Income: IDR 622Bn (vs. 9M23: • Store network: Refreshing store portfolio with new store pipeline, increased store
IDR 631Bn), 1.3% lower vs. LY. closures (from 10 to 13), and renovation plans for strategic stores. Watchlist has
increased from 13 to 20 stores.
Inventories: IDR 0.6Tn (vs. FY23: IDR
• Omni-channel: CV onboarding on track with 79% on supplier portal. Expanding
0.8Tn), representing inventory turn of
marketplaces reach and penetration with addition of leading marketplace.
2.6x, with 24% reduction from tightened
Shop & Talk upgrade initiative on track for improved customer experience.
intake and promotion drive.
• ESG: Efforts gaining momentum with the use of sustainable energy sources and
Guidance: IDR 1.2 Tn EBITDA for FY24 sustainable materials. Governance structures strengthened to oversee privacy and
remains. cybersecurity risk management.
3
Page 4
147 Stores
81 Cities
600+ suppliers
93% local
8,335
employees
Macroeconomic
Updates
4
Page 5
Macroeconomic Environment
Indicators suggest continued weakness in the economy
Deflation in last quarter was linked PMI below 50 in the last quarter F&B consumption increased at the
to decline in purchasing power reflected contraction expense of apparel and footwear
Inflation (MoM) Manufacturing Purchasing Managers’ Index (PMI) Household Consumption Composition
% %
0.60 60.0 100.0%
3.6% 3.2%
0.34
53.7
57.6% 55.2%
0.00 50.0 50.0%
49.2
-0.12
38.9% 41.6%
-0.60 40.0 0.0%
4Q18 2Q24
Sep-22
Sep-23
Sep-24
Jan-22
May-22
Nov-22
Jan-23
Nov-23
Jan-24
May-23
May-24
Mar-23
Mar-22
Jul-22
Jul-23
Mar-24
Jul-24
Jan-23
May-23
Jan-24
Sep-23
Nov-23
May-24
Sep-24
Jul-24
Mar-23
Jul-23
Mar-24
F&B Others Apparel & Footwear
Source: Statistics Indonesia, S&P Global (1 Oct’24) 5
Page 6
147 Stores
81 Cities
600+ suppliers
93% local
8,335
employees
Financial Performance
6
Page 7
Financial Highlights
Despite Gross Profit declining by 2.3%, Net Income decreased by 1.3%
Q3 YTD Sep
In IDR Bn
2024 2023 % Growth 2024 2023 % Growth
Gross Sales 2,245 2,223 1.0% 9,479 9,615 -1.4%
SSSG % 1.6% -8.0% -1.6% -2.3%
Gross Profit 754 750 0.6% 3,280 3,356 -2.3%
Gross Margin % 33.6% 33.7% 34.6% 34.9%
OPEX (661) (688) -4.0% (2,198) (2,220) -1.0%
EBITDA 93 61 51.7% 1,081 1,136 -4.8%
EBITDA Margin % 4.2% 2.8% 11.4% 11.8%
Net Income (Loss) (4) (53) -92.8% 622 631 -1.3%
Net Income Margin % -0.2% -2.4% 6.6% 6.6%
7
Page 8
Financial Highlights
Net Debt of IDR 78Bn with unused Loan Facility at IDR 1.48Tn
ASSET LIABILITIES & EQUITY
In IDR Bn Sep-24 Dec-23 In IDR Bn Sep-24 Dec-23
Cash and Bank Balance 137 508 Bank Loan 215 550
Trade Receivables 24 60 CV Trade Payables 411 770
Inventories 603 793 DP Trade Payables 290 457
Right-of-Use Assets 2,098 2,509 Lease Liabilities 2,691 3,051
Other Assets 1,234 1,306 Other Liabilities 1,023 1,022
Fixed Assets 646 705 Equity 112 31
Total Asset 4,743 5,880 Total Liabilities & Equity 4,743 5,880
8
Page 9
Sales Performance
Number of watchlist stores increased; performance relatively strong outside Greater Jakarta
Store Performance (SSSG) YTD Sep’24 Store Performance by Geography (SSSG) YTD Sep’24
Gross Sales by
Region (%)
Greater Jakarta 22.0%
Outside
Java Java ex Jakarta 35.8%
-0.2% Outside Java 42.2%
Regular stores -1.6% Watchlist stores Total Sales 100.0%
-1.5% 133 -3.5%
comparable
stores
The performance under watchlist (13 to 20 stores)
Greater Java
brought down the total performance
Jakarta ex Jakarta
-6.7% 0.0%
9
Page 10
KEY FOCUS
Merchandise Store Network Omni-channel Brand
Full Potential Optimization Expansion Development
Operational OPEX Environmental,
Excellence Optimization Social, &
Corporate
Governance
Strategy Updates
10
Page 11
Merchandising Transformation
Assortment refreshed to cater to younger, modern consumers
CV optimization to improve Introducing new categories
margin and release space provided by vacant space
Beauty, Home & Accessories
CONSIGNMENT NEW
VENDORS (CV) CATEGORIES
ESTABLISHED EMERGING
PRIVATE LABEL BRANDS PRIVATE LABEL
Rebranding with refreshing Build on momentum to
assortment and creative expand reach and
direction assortments 11
Page 12
Brand Development
Focus on targeted channels, private label to build brand equity among younger audience
Social media revamped to be Tangible rebranding to grow
younger and more on-trend customer engagement
• More focus on building • Key private label’s
private label brand equity. communications has been
redesigned to signify
• Focus on targeted channels revitalized DNA.
popular with younger target
audience. • Visual merchandising
enhanced with modern
• Instagram organic posts aesthetics coupled with
engagement in 3Q24 on-trend marketing collateral.
increased by 24% QoQ.
• Customized activations are
• TikTok social media followers planned for each shopper
increased by triple-digit on a community, including
QoQ basis. engaging KOLs.
12
Page 13
Omni-channel Expansion
Continuing to expand digital reach with wider offering
Matahari.com Marketplace
• On-boarded 79% CV • To expand Marketplace business on
Brands onto supplier leading platforms.
platform. • Launching Marketplace Fulfilment from
• To launch Live commerce Stores, for both private labels and
on M.com by Dec’24. consignment brands.
Shop & Talk
• To integrate Shop & Talk with
Matahari.com checkout.
• To upgrade Shop & Talk with
Gen-AI-powered search and
customer support.
13
Page 14
Store Network Optimization
Developing a healthy store portfolio
Store closure Watchlist stores New store opening Modernizing stores Store right-sizing
Closure of 10 stores is Addition of 7 stores to Remain selective for Renovation of stores CV optimization and
on track, with watchlist after further new store pipeline continues, with other initiatives may
additional 3 stores for review, for a total of and deferring improved interiors, result in right-sizing of
closure. 20 stores on watchlist. openings to 2025. visuals, and fixtures. certain stores with
improved economics.
Additional space
provided for
inspiration corners
and new categories.
14
Page 15
Environmental, Social, Governance
Balancing profitability with planet and people concerns
Environmental Social Governance
• Sourcing 5,250 MWh electricity from • Collaborating with institutions and • Strengthening personal data
Cirata, Indonesia’s largest Hydro customers to provide education to protection policies and systems
Power Plant, equivalent to the energy the underprivileged in Yogyakarta. across customers, employees, and
needs of Head Office, Distribution • Continuing library renovation suppliers, as well as providing
Center, and 16 large-format stores. program in 16 schools. training to staff.
• Helping conserve forests by using • Fortifying cybersecurity to
reusable bags to replace paper safeguard our stakeholders beyond
shopping bags in almost all stores. our business.
15
Page 16
147 Stores
81 Cities
600+ suppliers
93% local
8,335
employees
Closing Remarks
16
Page 17
Closing Remarks
Macroeconomic weakness continues, with lower expectation in Q4
Financial Performance
Continued weakness in the economy with deflation experienced in the last quarter linked to decline in purchasing power.
3Q24 had a modest sales increase, 4Q24 is expected to remain challenging. Based on the current sales trend and planned
store closures, we expect to end the year with EBITDA of 1.2 Tn.
Transformation Initiatives
Merchandising: Enhance capabilities with deeper private label focus. CV optimization to improve productivity. SUKO expansion
beyond existing stores. Building internal capabilities in adjacent categories (e.g. Home and Accessories).
Marketing: Applying insights from market studies across KOLs, social media, community engagements and events. Driving
awareness and positioning our PL to attract modern and younger customer base.
Store network: Refreshing store portfolio with new store pipeline, increased store closures (from 10 to 13), and renovation plans
for strategic stores. Watchlist has increased from 13 to 20 stores.
Governance: As we are looking towards upgrading our systems, we have strengthened our cybersecurity and personal data
protection programs to safeguard our business and its stakeholders.
17
Page 18
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.
18
Page 19
Thank you
Names mentioned 2 people and organisations named in the text · linked when the evidence is strong
unresolved
person
Transformation Initiatives Merchandising
p.17
unresolved
org
Matahari Department Store Tbk
p.18 ×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.