Highlights:
- 1H24 sales of Rp 7.23 trillion compared to Rp 7.39 trillion last year, showing SSSG of -2.8%
- Gross Margin for the period was 34.9%, lower than last year's 35.3%.
- EBITDA of Rp 988 billion, and Net Profit of Rp 626 billion
- Management provides EBITDA projection of IDR 1.2 trillion for 2024
Matahari (the "Company"; stock code: "LPPF") today announced its financial results for the first half of 2024, highlighting the impact of a challenging Lebaran period and continued low consumer spending. Despite these challenges, the Company continues to make progress in executing its strategic plans.
Sales for the period amounted to Rp7.23 trillion, down 2.2% compared to 1H23, equivalent to SSSG of -2.8%. Gross Margin reached 34.9%, down from 35.4% in the same period last year, due to stock clearance at the beginning of the year. Earnings Before Interest Tax, Depreciation, and Amortization (EBITDA) amounted to Rp988 billion, with net profit of Rp626 billion. Based on the first half results, Management projects EBITDA for the 2024 financial year to be Rp1.2 trillion.
|
Description (in billion Rp) |
1H 2024 |
1H 2023 |
Variance |
|
Gross Sales |
7.233 |
7,392 |
-2.2% |
|
Net income |
3,753 |
3,852 |
-2.6% |
|
Gross Margin % |
34.9% |
35.3% |
|
|
EBITDA |
988 |
1,075 |
-8.0% |
Matahari continues to make progress in its strategic plans, especially in merchandising. The company plans to increase productivity through area expansion and increasing product variety of its main consignment brands. Rebranding of exclusive brands continues to be done to attract more customers, and in-house brand SUKO is ready to expand its reach to more outlets.
Matahari will continue to leverage influencers and social media to increase brand awareness. The company is also planning a major campaign in the second half of 2024 with a focus on building community and increasing brand engagement.
Digital initiatives continue to make progress with 58% of consignment vendors (CVs) now onboarded with supplier platforms. User experience is expected to improve with greater CV product variety, live commerce, store fulfillment, and improved search features.
The company postponed the opening of new stores for the second half of this year and selectively opened stores only in high-quality malls.
The Company remains focused on cost management. Rent negotiations in the first half of the year have resulted in savings, supported by rent reductions and flexible lease agreements. Initiatives to improve workforce productivity have been planned for the second half of the year and are expected to yield positive results.
“First half results show continued weakness in consumer spending, particularly in apparel and footwear. However, we remain committed to our strategic plans for long-term growth,” said Monish Mansukhani, Matahari CEO. “We are also focused on operational improvements and expanding our reach to better serve our customers.”
