PT Matahari Department Store Tbk : Matahari Reports FY24 Results, Preserving Profitability amidst Muted Consumer Spending

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Matahari Reports FY24 Results, Preserving Profitability amidst Muted Consumer Spending News 07 March 2025 Corporate Communications Share: whatsapp facebook twitter line telegram Highlights: · FY24 Sales were IDR 12.3 trillion, with -1.7% same-store sales growth (SSSG) · Gross Margin for the period was 34.6%, higher than 34.2% in 2024 · EBITDA was IDR 1.4 trillion, decreased by 0.9% · Net Income was IDR 828 billion, grew by 22.5% Today, Matahari ("Company"; stock code: "LPPF") reported its financial results for the fiscal year ending 31 December 2024. The Company posted total sales of IDR 12.3 trillion, a 2.0% decrease from 2023, with SSSG declining by 1.7%. This reflects persistent challenges in consumer spending, especially during the Lebaran season and in the fourth quarter. Nonetheless, the gross margin improved to 34.6%, up from 34.2% in 2023, driven by product freshness. This improvement and the efficiency in operating and financial expenses helped counter the sales slowdown and resulted in an EBITDA of IDR 1.4 trillion, a 0.9% decline from last year and the Net Profit of IDR 828 billion, increased by 22.5%. Description (in billion IDR) FY 2024 FY 2023 Variance Gross Sales 12,307 12,552 -2.0% Net Revenue 6,399 6,539 -2.1% %Gross Margin 34.6% 34.2% EBITDA 1,398 1,411 -0.9% Net Income 828 675 22.5% Matahari focused on several strategic initiatives during the year, including the development of private label brands to attract younger, modern shoppers. SUKO gained traction with coverage in 79 stores, and ZES, a new private label brand, was launched in the fourth quarter of 2024, targeting fashion-conscious consumers. Matahari optimized its store portfolio by trimming 13 underperforming stores, resulting in an EBITDA uplift of IDR 13 billion. Online operations were also strengthened with the increasing online assortment by onboarding consignment brands, contributing 41% of total Matahari consignment business. Looking forward to 2025, Matahari remains committed to its strategic initiatives to navigate the uncertain economic environment. The Company plans to expand its private label assortment and explore new categories such as home and living. Matahari will also extend specialty format stores for SUKO and ZES, rationalize and downsize underperforming stores, and renovate select strategic A-stores. At the same time the Company will continue to focus profitability by scrutinizing rental and labour expenses, as well as product costs. Monish Mansukhani, CEO of Matahari, remarked, "Although middle-class consumer spending has slowed, our 2024 results highlight our dedication to profitability. As we fine-tune our strategies for 2025, we continue to prioritize enhancing our economics and upgrading our offerings to ensure sustainable growth." Share: whatsapp facebook twitter line telegram

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