Alfamidi Optimistic Revenue Grows 11 Percent In 2024

Alfamidi (Photo: dock. Antara)

JAKARTA - PT Midi Utama Indonesia Tbk (MIDI) remains optimistic that it can record positive prospects for the retail business in 2024 and aims to increase revenue by 11 percent in 2024 in line with the addition of 200 new Alfamidi outlets.

MIDI Corporate Secretary Suantopo Po said that in terms of revenue, MIDI targets a consolidated revenue growth of 11 percent where the SSSG target for Alfamidi is 6 percent.

Based on the company's financial statements as of the third quarter of 2023, MIDI posted a net income of IDR 12.92 trillion. This amount is higher than the same period the previous year, which was IDR 11.55 trillion.

"Through careful planning, MIDI hopes to provide quality retail services to meet customer needs and provide the best for all stakeholders," MIDI management said in an official statement, Wednesday, December 20.

In terms of outlet development, MIDI plans to open 200 new Alfamidi outlets in 2024. Regarding the Lawson Convention store format, after almost 11 years of stagnation at the same time the company will plan to open 250 new Lawson outlets consisting of 50 stand-alone format outlets and 200 store-in-store format outlets in 2024.

"The company remains committed to developing Lawson outlets and believes in the potential for the Lawson Convention store in Indonesia," said Suantopo.

However, MIDI must also apply the principle of prudence in the selection of outlet locations to maintain a balance between quantity and quality, prioritizing profitability because a new Lawson outlet takes about three years to reach a payback period.

MIDI recorded that Alfamidi outlets in Indonesia reached 2,220 outlets as of November 2023. The total number of Lawson outlets is 646 outlets, consisting of 341 stand-alone and 305 outlets having a store-in-store format.

Suantopo conveyed that to support the development of outlets, MIDI plans to relocate the operations of two warehouses rented in North Sulawesi and Southeast Sulawesi provinces to a new warehouse owned by MIDI, which is planned to operate in the second and fourth quarters respectively.

Suantopo hopes that the new warehouse will increase its normal capacity to 310 outlets. With this additional capacity, it is hoped that outlets supplied by the warehouse can sell more types of products, especially fresh food products, so that they are expected to increase sales and margins.

In addition, Suantopo added that MIDI will also continue to improve the performance of existing outlets through various aspects, such as controlling product destruction rates, product innovation, increasing brand awareness, optimizing promotional activities and cost efficiency.

As for capital expenditure (Capex), next year's needs are projected to be around IDR 1.4 trillion, whose funding will come from MIDI's internal cash and funds from the results of the issuance of new shares (right issue) in 2023.