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20240724_LPPF_Laporan Informasi dan Fakta Material_31686999_lamp2.pdf
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24 July 2024 LPPF.IJ / LPPF.JK 1H/2Q 2024 Earnings Call
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Agenda
No Topic Page
1 Executive Summary 3
2 Macroeconomic Updates 4–6
3 Financial Performance 7 – 10
4 Strategy Updates 11 – 16
5 Closing Remarks 17 – 18
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Executive Summary
Progress and Plans on Transformation Initiatives
Sales: IDR 7.2Tn (-2.2% vs. 1H23; -2.8%
SSSG vs. 1H23). Difficult 1st half dragged • Strategy and organization: Continued progress on strategic initiatives.
by weak Lebaran performance and Organizational changes made to improve execution.
muted consumer sentiment.
• Merchandising: Expanding space for strategic CV brands by adding more stores
Gross Margin: 34.9% (vs. 1H23: 35.3%) as and offering a wider range. Key private label brands rebranded with a fresh
stock clearance activity in early quarter collection for Q4. SUKO and other private label expansion continues.
lowered margin. • Marketing: Effective social media campaign during Lebaran. Focus on digital
EBITDA: IDR 988Bn (vs. 1H23: IDR 1,075Bn) channels and influencers in 1H24 will continue further in 2H24 with another mega
with OPEX growth of 0.4%. campaign, supported by lifestyle community building and brand engagement.
• Omni-channel: Digital sales increased by 18.9% in 1H24. In-store fulfillment
Net Income: IDR 626Bn (vs. 1H23: initiatives on track with 58% CV on-boarded. Deploying new WMS to enhance
IDR 684Bn), 8.4% lower than 1H23. inventory accuracy and new OMS to expedite the transaction processing.
Inventories: IDR 0.8Tn (vs. 1H23: IDR 1.0Tn) • Store network: No plans for store openings in 2H24 given increased selectivity.
driven by conservative buying, which Closure of 10 stores in progress, with 7 completed in 1H24. Major renovation
ended with 21.5% less stock than LY, planned for A-grade stores in 2H24.
mitigating overstock issue of 2023.
• Store operations: NPS improved to 77. Expansion of reach continues, with 12.5%
Guidance: IDR 1.2 Tn EBITDA for FY2024. increase in bazaar locations. Labor productivity improvement will be key focus in
2H24.
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148 Stores
81 Cities
600+ suppliers
93% local
9,010
employees
Macroeconomic
Updates
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Middle- and lower-income groups continued to be impacted
CCI gap between income segments continued
Consumer Confidence Index (CCI) Gini Ratio
by Spending Group per Household by Geographic Class/Level
140 0.42
100 0.36
60 0.3
Jan May Sep Jan May Sep Jan May Sep Jan May Sep Jan May Sep Jan May Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar
2019 2020 2021 2022 2023 2024 2017 2018 2019 2020 2021 2022 2023
City National Rural
IDR 1-2 Mn IDR 2-3 Mn IDR 3-4 Mn IDR 4-5 Mn IDR 5 Mn+
Source: Bank Indonesia Source: Statistics Indonesia, BNI 5
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Apparel and footwear spending remains below 2019
Household share of spend shifted away from clothing and footwear
IDR Tn
200
179
170
159
143
129
100
-
2019 2020 2021 2022 2023
% of household spending
on clothing & footwear 3.6% 3.6% 3.5% 3.3% 3.2%
Source: Euromonitor International; Statistics Indonesia 6
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148 Stores
81 Cities
600+ suppliers
93% local
9,010
employees
Financial Performance
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Financial Highlights
Sales decline of 2.2% coupled with OPEX increase resulted in EBITDA of IDR 988 Bn
Q2 H1 2024
In IDR Bn
2024 2023 % Growth 2024 2023 % Growth
Gross Sales 3,503 4,647 -24.6% 7,233 7,392 -2.2%
SSSG % -25.0% -2.8%
% DP 28.4% 29.6% 30.0% 30.1%
% CV 71.6% 70.4% 70.0% 69.9%
Gross Profit 1,223 1,634 -25.1% 2,526 2,606 -3.1%
Gross Margin % 34.9% 35.2% 34.9% 35.3%
OPEX (754) (793) -4.9% (1,538) (1,532) 0.4%
EBITDA 469 840 -44.2% 988 1,075 -8.0%
EBITDA Margin % 13.4% 18.1% 13.7% 14.5%
Net Income (Loss) 300 583 -48.5% 626 684 -8.4%
Net Income Margin % 8.6% 12.5% 8.7% 9.3%
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Sales Performance
Sales continued being contributed by active loyalty members
Active loyalty members (Mn)
8.6 8.2
6.9
The number of active Loyalty members was
4.0 steady above 8 Mn members in line with
continued promotion
2021 2022 2023 1H24
Active member sales contribution (%)
78.4% 78.7%
65.9%
51.8% Active member contribution was maintained
at 79%
2021 2022 2023 1H24
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Financial Highlights
ASSET LIABILITIES & EQUITY
In IDR Bn Jun-24 Dec-23 In IDR Bn Jun-24 Dec-23
Cash and Bank Balance 211 508 Bank Loan 400 550
Trade Receivables 79 60 CV Trade Payables 455 770
Inventories 707 793 DP Trade Payables 216 457
Right-of-Use Assets 2,235 2,509 Lease Liabilities 2,790 3,051
Other Assets 1,207 1,306 Other Liabilities 1,144 1,022
Fixed Assets 679 705 Equity 112 31
Total Asset 5,118 5,880 Total Liabilities & Equity 5,118 5,880
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KEY FOCUS
Merchandise Store Network Omni-channel Brand Development &
Full Potential Optimization Expansion Loyalty
Operational OPEX Environmental,
Excellence Optimization Social, &
Corporate
Governance
Strategy Updates
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Merchandising Transformation
Expansion of key CV brands, with private labels refreshed
Private Label brands: Consignment Vendor brands:
First-Half Progress Second-Half Focus
Leaner, Fresher Apparel Flat; Non-Apparel Private Label Relaunch CV brand strengthening
Ending inventory position Challenging Anchor in-house brands set for Optimize space for
significantly improved and Weak Lebaran sales and Q4 relaunch with new productive categories/
freshness increased. footwear challenges due collection. SUKO to expand brands.
to import regulations. beyond current 42 stores.
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Brand Development & Loyalty
Continued use of influencers and social media, backed by community & brand engagement
Ridwan Kamil Fitri Tropica Ricky Harun Dr. Tirta
ex Governor Media Personality Media Personality Enterpreneur
First-Half Progress Second-Half Focus
• Effective social media exposure, particularly during • Community building by engaging a variety of specialty
Lebaran. communities and participating in events, such as Jakarta
Sneakers Day.
• Usage of investment-effective Mega Key Opinion • Proprietary mega campaign to offer an alternative
Leaders across a variety of age groups and audience shopping season beyond Lebaran & Year-End.
segments, generating strong user engagement.
• Broadening and usage of Mega Key Opinion Leaders to
extend reach, develop brand, and generate traffic.
• Dynamic vouchers served as an effective tool to drive
sales and increase basket size. • Converting offline-only active loyalty members to shop
online.
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Omni-channel Expansion
Expanding product offering through fulfilment-from-stores
First-Half Progress
• Growing number of CV suppliers on-boarded with 3.5% of consignment vendors selling
online and 58% uploaded inventory onto the Matahari platform.
• Load time shortened by half with browser and code optimization on Matahari.com.
• Conversion improved by 14% through optimized filters with multi attributes selection.
Second-Half Focus
• Improved Matahari.com user experience with greater CV assortment, fulfilment from
stores, live commerce, improved search functionality and integrated content
management.
• Continued expansion across new marketplaces along with dedicated digital presence
for private label brand across marketplaces.
• Shop & Talk upgraded with AI for customer journey and integrated with Matahari.com
for single-view inventory, common check-out, and united loyalty.
• Deploying new Warehouse Management System to enhance inventory accuracy and
new Order Management System to expedite the transaction processing.
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Store Network Optimization
Store aesthetics and layout improved, but expansion plans delayed
First-Half Progress Second-Half Focus
• Positive feedback and insights from Aeon Deltamas • Three stores planned for closure in 2H24.
store. • Store expansion delayed for a more conservative
• Some support received from rental rebates and variable approach and greater selectivity of store locations.
rental agreements negotiated. • Store renovation for several A-grade stores.
• Of the 10 stores planned for closure in 2024, 7 were • Rental negotiation to continue.
completed.
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Operational Excellence
Touchpoints extended virtually and physically, with improved productivity
First-Half Progress Second-Half Focus
• NPS improved from 74 to 77. • Productivity improvement by better aligning resource
deployment with sales opportunities, including peak time
• Enhancing training and recruitment to support 12.5% management.
increase in bazaar locations.
• Revisiting rewards to provide adequate incentives to
• Leveraging in-store staff to support live shopping achieve sales targets.
experience and drive digital sales.
• Enhancing navigation and product display with
reorganized team.
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148 Stores
81 Cities
600+ suppliers
93% local
9,010
employees
Closing Remarks
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Closing Remarks
Difficult 1H24 due to weak Lebaran and challenging outlook; strategic initiatives continue
Financial Performance
Softness in Lebaran and post Lebaran trading impacted overall 1st half results. FY24 EBITDA guidance of IDR 1.2 Tn.
Transformation Initiatives
Strategy and organization: Organizational changes have been implemented.
Merchandising: Store expansion for key CV brands, replacing unproductive brands. Rebranding private label brands with new
look and fresh collection. Expanding private label SUKO and others.
Omni-channel: CV onboarding key focus for 2H24 to improve merchandise assortment. User experience to be improved with
performance enhancement, live commerce, and improved search engine. Back-end infrastructure to be upgraded in 2H24.
Marketing: Focus on influencers and digital channels in 1H24 will continue further in 2H24 along with mega campaign and
community engagement.
Store Network: No planned store opening in 2H24. Closure of seven stores completed, with three planned for 2H24. Renovation
for several A-grade stores planned by Q4.
Store Operations: Staff training has Improved NPS to 77. Drive labor productivity in 2H24.
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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
Names mentioned 3 people and organisations named in the text · linked when the evidence is strong
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Bank Indonesia
p.5
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Dr. Tirta
p.13
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Matahari Department Store Tbk
p.19 ×4
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