Highlights:
· FY24 sales of Rp 12.3 trillion, with -1.7% same-store sales growth (SSSG)
· Gross Margin during the period was 34.6%, higher than 34.2% in 2024.
· EBITDA of Rp 1.4 trillion, down 0.9%
· Net Profit of Rp 828 billion, growing 22.5%
Today, Matahari (the “Company”; stock code: “LPPF”) announced its financial results for the fiscal year ended 31 December 2024. The Company posted total sales of Rp12.3 trillion, down 2.0% compared to 2023, with SSSG declining by 1.7%. This reflects continued challenges in consumer spending, particularly during the Lebaran season and in the fourth quarter. Despite this, gross margin improved to 34.6%, up from 34.2% in 2023, driven by the introduction of newer products. This improvement, coupled with efficiencies in operating and financial costs, helped overcome the sales slowdown and resulted in EBITDA of Rp1.4 trillion, down slightly by 0.9% from last year, while Net Profit increased by 22.5% to Rp828 billion.
|
Description (in billion Rp) |
FY 2024 |
FY 2023 |
Variance |
|
Gross Sales |
12,307 |
12,552 |
-2.0% |
|
Net income |
6,399 |
6,539 |
-2.1% |
|
Gross Margin % |
34.6% |
34.2% |
|
|
EBITDA |
1,398 |
1.411 |
-0.9% |
|
Net profit |
828 |
675 |
22.5% |
Throughout 2024, Matahari is focusing on several strategic initiatives, including the development of exclusive brands to attract young and modern consumers. SUKO continues to grow with a reach of 79 stores, while ZES, the latest exclusive brand, was officially launched in Q4 2024 to target fashion-conscious consumers.
Matahari also optimized its store portfolio by cutting 13 underperforming stores, resulting in an increase in EBITDA of Rp 13 billion. On the online business side, Matahari expanded its product range by partnering with a number of consignment brands, which contributed 41% to Matahari's total consignment business.
Looking ahead to 2025, Matahari remains committed to implementing adaptive strategic initiatives to address uncertain economic conditions. The Company plans to expand its exclusive brand collection and explore new categories such as home furnishings. The Company will also expand its special format stores for SUKO and ZES, rationalize and reduce underperforming stores, and renovate certain category A stores that have strategic value. At the same time, the Company will continue to focus on profitability by reviewing rental and labor costs, as well as product costs.
Monish Mansukhani, CEO of Matahari, said, "Despite slowing middle-class consumer spending, our achievements in 2024 demonstrate our dedication to profitability. While refining our strategy for 2025, we continue to prioritize strengthening the company's economic fundamentals and refining our products to ensure sustainable growth."
