Hero Still Destroyed After Closing Giant, Their Loss Was Recorded Rp747.43 Billion In The Third Quarter 2021

JAKARTA - PT Hero Supermarket Tbk (HERO) losses rose in the third quarter of 2021. The retail issuer recorded a loss of Rp747.43 billion or 120.18 percent higher than September 30, 2020, which was Rp339.46 billion.

In HERO's financial report published on the Indonesia Stock Exchange (IDX) information disclosure page, quoted on Sunday, October 31, the company recorded a net income of Rp4.44 trillion, down 35.19 percent compared to the same period the previous year of Rp6.86 trillion with a loss of per basic share Rp179.

The Company's revenue consists of retail income, consignment income, restaurant income, rebates, and consignment fees. Retail revenue was recorded at Rp4.95 trillion or lower than the previous Rp7.64 trillion, consignment revenues were recorded at Rp476.23 billion or lower than the previous Rp636.48 billion, and restaurant revenues were recorded at Rp63.44 billion.

Meanwhile, rebates and consignment fees were recorded at Rp752.06 billion or lower than the previous Rp978.53 billion, and consignment costs were recorded at Rp298.74 billion or lower than the previous Rp439.36 billion.

President Director of Hero Supermarket, Patrik Lindvall said, the Company posted a net loss of Rp747 billion in the third quarter of 2021, with non-recurring costs of Rp456 billion arising from the restructuring of Giant's business.

In addition, IKEA's like-for-like sales were affected by the trade operational restrictions imposed by the Government in the third quarter. However, the number of customer visits increased in September compared to July and August.

The contribution of e-commerce in this quarter continued to increase compared to the previous quarter.

"Profitability has been affected by pre-opening costs associated with opening new stores and decreasing sales revenue," said Patrik.