Highlights:
• 1Q24 sales grew by 35.9% to Rp 3.7 trillion
• Gross Margin for the quarter was 34.9%, lower than last year's 35.4%, due to early-quarter stock-clearing activities that lowered margins.
• 1Q24 EBITDA was IDR 519 billion, and Net Profit was IDR 326 billion.
Matahari (the "Company"; stock code: "LPPF") reported sales of Rp3.7 trillion, showing an increase of 35.9% compared to last year, with Same Store Sales Growth (SSSG) of 34.3%, driven by the earlier Lebaran season compared to last year. The performance of the first two months resulted in SSSG of 0.7%, while during the Lebaran period it reached SSSG of -2.4%.
Despite a decline in Gross Margin in Q1 2024 to 34.9% from 35.4% last year due to stock clearance activities in January and February, Gross Margin during Lebaran this year increased by 0.2% from the same period last year. The Company's EBITDA in Q1 2024 reached IDR 519 billion, while Net Profit was IDR 326 billion, almost half of the total figure last year. Effective purchasing strategies and schedules related to the Lebaran season allowed the Company to close the quarter with 27% lower stock compared to Q1 last year, thus placing the business in a better position from a stock clearance perspective.
| Description (in billion Rp) | 1Q 2024 | 1Q 2023 | Variance |
| Gross Sales | 3,731 | 2,746 | 35.9% |
| Net income | 1,973 | 1,443 | 36.7% |
| % Gross Margin | 34.9% | 35.4% | |
| EBITDA | 519 | 234 | 121.9% |
The development of the initiative includes the opening of a new concept store at AEON Deltamas which received a positive response from consumers. A more selective approach to opening new stores has changed the target of opening stores to 3 to 4 new stores in 2024. The progress of store renewal is also on track, with the plan to close 8 out of 10 stores in 2024 having been finalized with building owners. On the other hand, digital channels continue to be developed by continuously improving customer experience and technology through offering more product choices, personalized marketing strategies and rewards, and improving UI/UX features.
Matahari’s merchandise portfolio continues to expand, with the recent rebranding of exclusive brands and expansion of SUKO stores. In addition, over 30 new third-party brands have been introduced this year to meet the needs of customers in the higher-income segment. At the same time, the Company is engaging younger consumers through social media initiatives, community building and personalized marketing efforts.
“Our performance during this Lebaran season has been impacted by macroeconomic factors such as lower spending in the lower middle segment. We continue to actively identify areas where we can improve our business operations, develop our product offerings, and refine our strategic approach. Despite the challenges, we remain committed to advancing our strategic initiatives to better prepare our business for future opportunities,” said Monish Mansukhani, CEO of Matahari.
