The Hartono Brothers' Ranch Market From The Djarum Group Of Conglomerates Will Add 4 Outlets This Year, 3 In Jakarta And 1 In Sulawesi

JAKARTA - The manager of the Ranch Market outlet of the Djarum Group owned by the Hartono Brothers conglomerate, PT Supra Boga Lestari Tbk (RANC) has decided not to distribute dividends to its shareholders this year. This is done by the company because it is focusing on expanding in the opening of new outlets.

"The 2022 target is to add 4 outlets starting in the second quarter, three in Jakarta and one in Sulawesi. We only opened in Sarinah last week," said Supra Boga Lestari's Managing Director Meshvara Kanjaya in a virtual public expose, Tuesday, May 31.

Previously, in 2021 RANC opened 19 new stores located in Greater Jakarta, Malang, Gresik, Balikpapan and Samarinda, including launching a new supermarket brand, "Farmers Family by Farmers Market". The company also took over 11 Giant outlets which have been closed since 2021 as a strategy for expanding retail penetration, which is considered still minimal.

Meshvara explained, the owner of the supermarket with the Ranch Market and Farmers Market brands has allocated a capital expenditure (capex) budget of IDR 42 billion in 2022. The capex funds, which are sourced from internal cash and bank financing, have been absorbed by around 25-30 percent of the allocated for the construction of new stores and to support logistics facilities in the company.

"We believe that the retail industry is still a promising sector in 2022. Collaborating with Blibli (PT Global Digital Niaga) as the majority shareholder, RANC will continue its business development strategy including the development of digital solutions to accelerate and strengthen omni-channels and focus on the achievement of sustainable performance growth. In addition, we are also committed to continuously improving the quality of products and services to our loyal customers, "he explained.

The company targets revenues to increase 21.2 percent to Rp3.6 trillion. Then the current year's profit is targeted to increase by 261.8 percent to Rp. 35.6 billion.

This increase in profit, said Meshvara, is the result of the implementation of operational excellence that has been carried out on an ongoing basis. As well as, increased profits from existing stores and new stores.

In 2021, RANC managed to record a consolidated net income of IDR 2.89 trillion in 2021, a decrease of 4.1 percent compared to 2020. Consolidated net income was recorded at IDR 9.8 billion. The decline in RANC's net profit is due to the large number of new store openings in 2021 which still need time to grow and contribute.