Matahari Department Store Owned By Conglomerate Mochtar Riady Raised Sales Of IDR 2.4 Trillion And Profit Of IDR 145 Billion In The First Quarter Of 2022

Matahari Department Store outlet, (Photo: Doc. Lippo Mall Kemang)

JAKARTA - The retail company from the Lippo Group owned by conglomerate Mochtar Riady, PT Matahari Department Store Tbk (LPPF) announced that it succeeded in recording gross sales of Rp. 2.4 trillion in the first quarter of 2022. This achievement grew 16 percent compared to the same period in 2021.

In an official statement from the LPPF, quoted on Tuesday, April 28, the company's strong sales generated EBITDA of IDR 251 billion in the first quarter of 2022 compared to IDR 14 billion in the first quarter of 2021. As a result, Matahari store management's net profit reached IDR 145 billion in the first quarter of 2022 compared to a net loss of IDR 95 billion in the first quarter of 2021.

Matahari Vice President Director and CEO Terry O'Connor said the company had a strong first quarter performance despite the Omicron variant peaking in February. The normalization of retail operating hours and the removal of most restrictions are also helping trading conditions going forward.

In addition, the company's new merchandise and merchandising practices supported the achievement of sales and margin productivity, and the strong recovery momentum enhanced the company's ability to invest in outlets, technology and marketing to create cycles.

"We continue to focus on operational excellence, strategic execution and prudent spending to drive superior results. Management's current guidance estimate of EBITDA is IDR 2 trillion and will be reviewed for increases during the second quarter results communication period," said Connor.

He continued, store expansion was accelerating, with the opening of Plaza Ambarrukmo Jogjakarta at the end of March followed by Mall Taman Anggrek Jakarta in mid-April, with new store concepts and trading results that exceeded expectations. The addition of these two new outlets brings the total outlets to 140 outlets in 77 cities throughout Indonesia.

"Matahari plans to open a minimum of 10 outlets by 2022. The development of the new format concept is well received by customers, and the company has also completed the new outlet format at Supermal Karawaci Tangerang," he said.

The company's Annual General Meeting of Shareholders (AGMS) held on April 5, 2022 also approved the distribution of a final dividend of Rp250 per share to be paid on April 28, 2022, in addition to an interim dividend of Rp100 per share paid on December 2, 2021. .

With clearer recovery visibility and a strong balance sheet and cash flow, LPPF recommends paying dividends of IDR 500 per share for 2022. In which, the dividend will be distributed in 2 interim namely IDR 125 per share and final IDR 250 per share which will be the highest in the history of the company.

Meanwhile, Matahari plans to hold an Extraordinary General Meeting of Shareholders (EGMS) on June 6, 2022, to seek approval for the cancellation of treasury shares and obtain a mandate for a longer-term share repurchase program for the period 6 June 2022 - 5 December 2023. In addition, LPPF also plans to renew the share buyback which is currently underway to expire on June 3, 2022.