Indonesian Pizza Hut Managers Will Expand To Digital Platforms, But Still Waiting For Shareholders' Approval

JAKARTA - The manager of Pizza Hut Indonesia, PT Sarimelati Kencana Tbk (PZZA) plans to expand its business activities in the digital platform sector. This corporate action aims to improve the company's performance in the future.

"We see a business opportunity by adding the digital platform business field. There is also the purpose of adding this business activity to commercial," explained Sarimelati Kencana's management in an official statement, quoted Thursday 9 December.

The business expansion will be carried out after obtaining the approval of shareholders through the Extraordinary General Meeting of Shareholders (EGMS) on January 13, 2022. However, management has not detailed the digital platform that will be developed.

The company's management said that the company's financial ratios for the 2022-2026 period would improve with the business expansion. This new business activity is believed to be able to boost the company's financial performance on average from year to year.

In that period, operating profit margin is estimated to increase to 9.94 percent. Then, the operating profit margin is 5.94 percent, and the net profit margin is around 4.74 percent.

Until the third quarter of 2021, Sarimelati Kencana managed to record a profit of Rp13.3 billion, compared to the same period in the previous year with a loss of Rp8.62 billion.

The increase in profit occurred when the company's net sales fell to Rp2.5 trillion, compared to the third quarter of 2020 of Rp2.6 trillion. Revenues for the third quarter of 2021 were contributed by third parties, namely food of Rp2.38 trillion and drinks of Rp119 billion.

The company's cost of goods sold fell to Rp861 billion, compared to the same period last year which was recorded at Rp927 billion. This brings the gross profit to Rp1.64 trillion from the previous Rp1.73 trillion.

The company's operating profit recorded an increase to Rp44.4 billion in the third quarter of 2021 compared to the same period the previous year of Rp13.12 billion. Meanwhile, profit before tax was successfully recorded at Rp20.04 billion from September 2020 which recorded a loss of Rp7.08 billion.

In 2022, the company plans to continue to increase the number of outlets in a number of areas, namely Java-Bali and Eastern Indonesia. While the target of adding 50 outlets in 2021 is expected to be achieved by the end of this year.