Back to announcement
20240430_LPPF_Laporan Informasi dan Fakta Material_31631654_lamp3.pdf
Other Text extracted LPPFSource file signed link, expires in 15 minutes
Extracted text 26
Page 1
LPPF.IJ / LPPF.JK 1Q 2024 Earnings Call 30 April 2024
Page 2
Agenda
No Topic Page
1 Executive Summary 3
2 Industry, Macroeconomic, and Commercial Updates 4–7
3 Financial Performance 8 – 13
4 Strategy Updates 14 – 22
5 Closing Remarks 23 – 24
2
Page 3
Executive Summary
Progress on Transformation initiatives
Sales: IDR 3.7Tn (+35.9% vs. 1Q23, +34.3%
SSSG due to early Lebaran). Jan-Feb • Strategy: Revisiting strategic direction and organizational structure.
SSSG was 0.7%, Lebaran SSSG was -2.4%.
• Store network: New concept store Aeon Deltamas opened on schedule and was
Gross Margin: 34.9% (vs. 1Q23: 35.4%) as well received. New store openings scaled back to 3-4 stores in 2024.
stock clearance activity in early quarter Refurbishment on plan. Timeline of 8 out of 10 stores for 2024 closure has been
lowered margin. Lebaran gross margin finalized with landlords.
performance was healthier at 35.9%,
• Merchandising: Renewed focus on private label brands with rebranding,
0.2% better than comparable
including SUKO store expansion and range development. Actively refreshing and
period.
upgrading third-party brand offering with introduction of over 30 new brands.
EBITDA: IDR 519Bn (vs. 1Q23: IDR 234Bn) or • Digital: Accelerating expansion across various digital channels: Matahari.com,
13.9% margin. Shop&Talk, and third-party marketplaces. Continuing to improve customer
experience and technology by enabling wider product offering, personalized
Net Income: IDR 326Bn (vs. 1Q23: IDR marketing and rewards, and enhancing UI/UX features.
101Bn), almost half of FY23 Net Income.
• Marketing: Engaging younger customers through social media engagement,
Inventories: IDR 1.1Tn (vs. 1Q23: IDR community building, private-label-focused marketing, partnering with third-party
1.5Trn) driven by conservative buying brand, and personalization.
and timing of Lebaran, which ended with
27% less stock than LY. • Cost: Optimization initiatives, such as manpower planning and rental negotiations,
mitigated business cost pressures.
3
Page 4
155 Stores
82 Cities
600+ suppliers
94% local
9,092
employees
Industry,
Macroeconomic, and
Commercial Updates
4
Page 5
Industry Updates
Mall occupancy yet to recover to 2019 levels; middle and lower-end malls most impacted
Historical Mall Occupancy per Developers Mall Occupancy in Jakarta In 1Q24
Premium 86.2%*
94.4%
Developer A
93.2% Upper-Middle 87.9%*
Developer B
88.0% Developer C
Middle 69.9%*
Developer D
79.0% Developer E
Lower ≈ 50.0%*
2019 2020 2021 2022 2023
Source: company presentations Source: Colliers
*arrows indicate changes of occupancy levels from 4Q23 to 1Q24;
% figures reflect the occupancy levels as of 1Q24
5
Page 6
Macroeconomic Situation
Different economic conditions across various groups
Consumer Confidence Index Gini Ratio
by Spending Group by Geographic Class/Level
0.409
127
124 0.388
112
0.313
Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar
Nov
Nov
Nov
Nov
Nov
Nov
Jul
Jul
Jul
Jul
Jul
Mar
May
Mar
May
Mar
May
Mar
May
Mar
May
Mar
Jan
Sep
Jan
Sep
Jan
Sep
Jan
Sep
Jan
Sep
Jan
2017 2018 2019 2020 2021 2022 2023
2018 2019 2020 2021 2022 2023 2024
IDR 1-2 Mn IDR 2-5 Mn IDR 5 Mn+ City National Rural
Source: Bank Indonesia Source: Statistics Indonesia, BNI
6
Page 7
2024 Lebaran Update
Muted Lebaran sales; stock started fresher, ended leaner
• We began the trading season with fresher stock vs. Q4.
• We ended the period with -2.4% SSSG and stock was 23% less vs last year.
We will continue to clear our aging inventory.
• DP SSSG was -3.2%, while CV was -2.1%.
• Weak 2024 Lebaran performance was notably apparent in Footwear
categories. Footwear performance was partially impacted by import
quota restrictions and higher prices.
• AUR decreased by 1.0% & Unit decreased by 1.3%.
• Lebaran sales were most challenged in Jakarta due to tougher
competition and mall occupancy issues in middle and lower tier malls.
7
Ladies 7/8 Batik Lace Kafthan | Connexion
Ladies Flat Shoes| Connexion
Page 8
155 Stores
82 Cities
600+ suppliers
94% local
9,092
employees
Financial Performance
8
Page 9
Financial Highlights
Early Lebaran (10 Apr’24 vs 21 Apr’23) results in timing gain
Q1
In IDR Bn
2024 2023 % Growth
Gross Sales 3,731 2,746 35.9%
SSSG % 34.3% 10.4%
Gross Profit 1,302 972 33.9%
Gross Margin % 34.9% 35.4%
OPEX (783) (738) 6.1%
EBITA
EBITDA 519 234 121.9%
EBITDA Margin % 13.9% 8.5%
Net Income (Loss) 326 101 221.9%
Net Income Margin % 8.7% 3.7%
• While sales grew by 36%, OPEX grew by 6% 9
Page 10
Sales Performance
Regular stores performed better than watch-list ones
Store Performance Merchandise Performance
IDR Bn +35.9%
SSSG 3,731
34.3%
31.4%
2,746
DP 30.9%
Regular stores Watch-list stores
34.6% 30.0%
CV 69.1% 68.6%
The performance under watch list brought
down the total performance
Q1 2023 Q1 2024
10
Page 11
Sales Performance Gross Sales by
Relatively strong performance outside Java Region (%)
1Q 2024
SSSG Greater Jakarta 22.7%
Outside Java
1Q24 : 32.6% Java exc Jkt 36.5%
Outside Java 40.8%
Sumatra Total Sales 100.0%
Kalimantan
Bali and East Indonesia
Greater Jakarta
SSSG East Java
Greater Jkt
West Java
1Q24 : 30.1%
Central Java
SSSG
Java ex Jkt
1Q24 : 39.1%
11
Page 12
Sales Performance
Sales continued being contributed by growing of active loyalty members
Active loyalty members
8.6 8.8
6.9 Active loyalty members continued growing in
line with activations during seasonal events
4.0
2021 2022 2023 1Q24
Active member sales contribution continued
growing in on the back of increasing active
loyalty members.
Active member sales contribution
78.4% 81.1%
65.9%
51.8%
NPS as of the end of Mar’24 was 71, showing
maintained customers feedback on
operational excellence.
2021 2022 2023 1Q24
12
Page 13
Financial Highlights
Net cash at 853bn with unused Loan Facility at 1.7Tn
ASSET LIABILITIES & EQUITY
In IDR Bn Mar-24 Dec-23 In IDR Bn Mar-24 Dec-23
Cash and Bank Balance 853 508 Bank Loan - 550
Trade Receivables 267 60 CV Trade Payables 1,105 770
Inventories 1,063 793 DP Trade Payables 985 457
Right-of-Use Assets 2,388 2,509 Lease Liabilities 2,948 3,051
Other Assets 1,312 1,306 Other Liabilities 1,163 1,022
Fixed Assets 682 705 Equity 364 31
Total Asset 6,565 5,880 Total Liabilities
Gross Margin & Equity 6,565 5,880
Remarks:
Lebaran timing impacts inventory and CV payables.
13
Page 14
KEY FOCUS
Merchandise Store Network Omnichannel Loyalty &
Full Potential Optimization Expansion Personalization
Operational OPEX Environmental,
Excellence Optimization Social, &
Corporate
Governance
Strategy Updates
14
Page 15
Merchandising Transformation
Refreshing Private label brands
Youthful,
casual,
affordable,
relaxed,
fun
exclusively at
15
Page 16
Merchandising Transformation
Refreshing Private label brands
Modern, Stylish, Quality, Masculine
Work & Weekend
16
Page 17
Merchandising Transformation
Refreshing Private label brands
Stylish, Modern, Versatile
Work & Casual
17
Page 18
Merchandising Transformation
Refreshing Private label brands
everyday essentials
with stylish & elegant touch
to core pieces
exclusively at
18
Page 19
Merchandising Transformation
Refreshing range & third-party brands portfolio
New third-party brands were introduced in 1Q24, with more to
come in 2H24. The rollout is structured in stages, tailored to meet
the evolving customer demand
Local: International:
Cargo Pant, Quilted Jacket, Anorak
jacket, Camp Short | Arthefact 19
Denim Jacket | Levi’s
Sneakers, Lace Up Shoes | Puma
Page 20
Store Network Optimization
Store portfolio continues to be enhanced
Store Expansion Store Refurbishment Progress on Watchlist Stores
• New concept store opening at Aeon • Store refurbishment to be conducted • Planned closure of 10 stores in 2024,
Deltamas, with modern interior and in six stores, mostly in 2H24. with confirmed timeline for 8 stores.
improved navigation, featuring shop-
• Refurbishment to include rebranding • Rental renegotiation in progress
in-shop concepts (specialty design).
and refreshing shopfront, lighting, and managed to receive support
Aeon Deltamas provides a template
wall display, general fixtures, and from developers for some watch-list
for new store formal rollout.
shop-in-shop. stores.
• Selectively opening a total of 3-4
new stores.
20
Page 21
Omnichannel Expansion
Continuing to enhance technology, improve experience to scale the digital penetration
Customer Technology and
Experience Marketing
business integration
• Enhancing product offerings through • Implementing data-driven targeting • Elevating Customer Experience
CV onboarding ensures consistent and personalized marketing by improving Search, SEO,
merchandise offerings across all campaigns to enhance ROI. and App Speed for
channels. Matahari.com.
• Introducing KOL affiliate program to
• Improving user experience by drive social engagement for both • Single view of inventory through
introducing features like click-and- offline and digital business. new order management
collect, AI-driven conversational and warehouse management
• Introducing online exclusive systems, across CV and DP
commerce, and live commerce.
incentives and promotions to and across all channels,
• Integrating offline features, such as expedite digital penetration. and enabling
Matahari Rewards with digital fulfillment from stores.
• Increasing Shop & Talk exposure
channels, such as Shop & Talk, to
among existing customers.
standardize and uplift shopping
experience. • Launching dedicated stores for
flagship brands on third-party
marketplaces.
21
Page 22
Loyalty & Personalization
Embracing new generation customers
• Building scale and relevance through popular Key Opinion Leaders.
New • Teaming up with relevant lifestyle and fashion communities (i.e.
Generation Sneakers, Street Fashion, Denim communities).
Customers • Conducting proprietary marketing campaigns beyond Lebaran
and festive seasons.
• Intensifying private label brands focused campaign (i.e. Suko,
Nevada, Cole) as main offers in Matahari.
Brand Building
• Improve Matahari brand promise beyond price and promotions.
Focus
• Boost personalization capability to be able to reach loyal customers
with more relevant offers.
Loyalty &
Personalization • Expand benefits variety for members through partnership with top
banks, fintech and brand partners.
22
Page 23
155 Stores
82 Cities
600+ suppliers
94% local
9,092
employees
Closing Remarks
23
Page 24
Closing Remarks
Financial results muted; key initiatives continue
Lebaran & Financial Performance
Lebaran sales performance of SSSG -2.4% highlights ongoing macro challenges; the team remains committed to advancing
strategic initiatives, and identifying areas of improvement. 1Q24 delivered almost half of FY23 full year Net income.
Initiatives
Selective store opening with total 3-4 stores. Aeon Deltamas with new concept was well received. The store closure plan is on
track with 8 of 10 stores confirmed.
Merchandising initiatives continue with refreshing and upgrading our brand portfolio, rebranding private labels.
Accelerating expansion on Matahari.com, Shop&Talk, and third-party marketplaces. Continuing to improve customer
experience and technology by enabling wider product offering, personalized marketing and rewards.
The marketing strategy aims to increase traffic by leveraging influencers in social media, community building, private-label
marketing, as well as personalization through collaboration with partners.
Capital Allocation
Dividend policy remains at a minimum of 50% of Net Profit.
24
Page 25
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.
25
Page 26
Thank you
Names mentioned 2 people and organisations named in the text · linked when the evidence is strong
unresolved
org
Bank Indonesia
p.6
unresolved
org
Matahari Department Store Tbk
p.25 ×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.