3 2024_Hero Q2 Press Release (Eng) v5.pdf

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PRESIDENT DIRECTOR’S STATEMENT


Introduction
The Company reported improved financial performance in the first half of 2024. Guardian
Health and Beauty continued to report strong sales and earnings growth. While IKEA's
performance was impacted by weak home furnishings demand, losses narrowed as a result of
cost control measures.


Company Performance
The Company reported net revenue of Rp 2,252 billion in the first half, an increase of 4%
compared to the same period last year.               The Company reported profit from continuing
operations of Rp 8 billion for the period, a significant improvement relative to Rp 144 billion
loss reported in the prior comparable period. Reported profit for the period was Rp 162 billion,
driven by gains from divestment of the Hero Supermarket operations as well as non-core
properties.


Guardian Health and Beauty continued to deliver strong results in the first half, benefiting from
increased foot traffic in premium malls and tourist locations. Like-for-like sales increased
double-digits and profit grew substantially compared to the previous year. Guardian continues
strengthening its value proposition by optimising its product range and expanding its
omnichannel presence to enhance customer accessibility.


IKEA’s business remained adversely affected by weak home furnishings demand. In response
to these challenging market conditions, IKEA continues to implement measures to manage its
financial performance, including space optimisation, cost control initiatives and inventory
management, which has supported improved profitability.




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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. Post-completion, the Company’s operations
will fully pivot to the Guardian and IKEA businesses in Indonesia. A gain on sale of Rp 28
billion was recorded in the first half as a result of this transaction.


During the first half, the Company also completed the sale of three non-core properties, which
further strengthened the Company’s financial position.


Prospects
The Company anticipates continued positive momentum for the Health and Beauty segment,
although there remains uncertainty regarding the recovery of the Home Furnishings business.
Despite these challenges, the Company is well positioned to deliver sustainable growth in the
medium to long-term.




Hadrianus Wahyu Trikusumo
President Director
31st July 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


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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