20240430_HERO_Laporan Informasi dan Fakta Material_31632497_lamp3.pdf

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PRESIDENT DIRECTOR’S STATEMENT


Introduction
The Company’s sales and gross profit increased in the first quarter of 2024 compared to the
same period last year. Guardian Health and Beauty performed encouragingly in the first
quarter, and Hero Supermarket's like-for-like sales improved. However, IKEA's performance
was impacted by decreased demand for home furnishings.


Company Performance
The Company achieved a net revenue of Rp 1,255 billion in the first quarter of 2024, resulting
in an 8% increase from the prior year, driven by strong Lebaran Festive results. Losses from
continuing operations narrowed in the first quarter relative to the corresponding period last
year, primarily due to improved performance from Guardian Health and Beauty. The Company
reported reduced profit for the period due to lower gains on the divestment of non-core
properties and lower IKEA profitability.


Guardian Health and Beauty reported positive like-for-like sales growth in the first quarter of
2024, underpinned by the recovery of foot traffic in premium malls and tourist locations. Profit
also grew strongly relative to the prior year. Guardian continues strengthening its value
proposition by optimising its product range and expanding its omnichannel presence to enhance
customer accessibility.


The weak demand for home furnishing impacted IKEA’s net revenue and profitability for the
period. As a result of these challenging market conditions, IKEA has implemented actions to
manage financial performance, including space optimisation, cost control initiatives and
inventory management.


Hero Supermarket’s sales and underlying profit improved in the first quarter, driven by good
like-for-like sales performance.
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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 successfully divested two non-core properties in the first quarter and one non-
core property in April 2024, which enhanced the Company’s financial position.


On 22nd April, the Company announced that it had entered into a Conditional Sale and Purchase
Agreement to transfer ownership of the Hero Supermarket business segment to affiliate PT
Hero Retail Nusantara. This transaction is expected to be completed by the end of June 2024.
After completing this transaction, the Company’s operations will fully pivot to the Guardian
and IKEA businesses. The Company remains confident in the long-term prospects of these
two businesses and the opportunity to increase market share growth.


Prospects
The Company anticipates ongoing variability in demand patterns across its business units in
2024. We expect to continue the positive momentum for the Health and Beauty segment;
however, uncertainty remains regarding the recovery of the Home Furnishing business. The
Company remains well-positioned to achieve sustainable growth in the medium to long-term.




Hadrianus Wahyu Trikusumo
President Director
30th April 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