Ranch Market Owned By Hartono Brothers' Djarum Group Lost IDR 22.34 Billion Despite Raising IDR 738 Billion Revenue In The First Quarter Of 2022, Why?

Ranch Market outlets. (Photo: Twitter @VickyShu)

JAKARTA - Retailer from the Djarum Group owned by conglomerate Hartono Brothers, PT Supra Boga Lestari Tbk (RANC) recorded a net loss of IDR 22.34 billion in the first quarter of 2022. This achievement is inversely proportional to the same period last year with a profit of IDR 5.98 billion.

In RANC's financial report, quoted on Tuesday 2 August, the loss occurred when the retail issuer 'Ranch Market' posted operating revenue growth of 1.74 percent to IDR 738.86 billion, higher than the profit position in the first three months of 2021, which was IDR 726.22 billion.

In detail, sales of goods in supermarkets have increased as well as being the backbone of RANC's income. In terms of geography, the largest contribution came from sales in the western region, compared to the eastern area, which reached IDR 652.67 billion and IDR 96.10 billion, respectively.

A number of expenses are factors that make the company lose. RANC's cost of goods increased by 2.71 percent to IDR 570.74 billion (yoy). The lion's share comes from the cost of beginning inventory and purchases.

Furthermore, selling expenses also increased to a total of IDR 125.46 billion (yoy), the majority of which resulted from increases in salaries and allowances, depreciation of assets, increased rental costs, electricity, water, and gas costs, coupled with increases in advertising and promotion costs.

This unsatisfactory performance in the first quarter of 2022 led RANC to record a basic loss per share of IDR 14, compared to a profit per share of IDR 4 which was achieved in the first three months of last year.

As of March 31, 2022, RANC scored a total asset of IDR 1.51 trillion, maintained from the end of 2021 at the same amount. The obligation to pay debts or liabilities increased slightly to IDR 1.03 trillion from the end of 2021 at IDR 1.00 trillion, while RANC's capital or equity shrank 4.28 percent to IDR 485.35 billion, from the end of last year at IDR 507.06 billion.