Hero Recorded Profit Of IDR 184 Billion In Quarter III, Driven By Beauty And Health Business

Hero Supermarket (Photo: Antara)

PT Hero Supermarket Tbk (HERO) recorded a net income of IDR 3,380 billion in the third quarter of 2024, an increase of 3 percent compared to the same period in 2023 of IDR 3,292 billion. In addition, Profit also increased by 868 percent to IDR 184 billion in the third quarter of 2024 when compared to the same period in the previous year, which was IDR 19 billion.

President Director of Hero Supermarket (HERO) Hadrianus Wahyu Trikusumo said the company managed to record solid financial performance in the first nine months of 2024, marked by excellent sales and profit growth in the Guardian Health and Beauty business.

"IKEA's performance during this period was influenced by declining furniture demand, however, the amount of losses was successfully reduced as a result of effective cost control measures," he said in his statement, Friday, November 1.

Hadrianus explained that the profit from the continued operation reached IDR 24 billion, reversing a loss of IDR 261 billion in the same period the previous year. This was driven by profit growth in the Guardian Health and Beauty business as well as cost savings that were successfully made at IKEA.

"The total profit recorded for that period includes profits from the divestment of Hero Supermarket operations and non-core property sales which reached Rp184 billion, up from Rp19 billion in the previous year," he said.

Hadrianus said that Guardian Health and Beauty continued to show strong performance with double-digit growth in comparable sales and a solid increase in profit during this period.

According to Hadrianus, the increase in visits to premium malls and tourist sites as well as product range optimization is key to the success of this segment. In addition, the Guardian is also expanding the presence of omnichannels to increase customer accessibility.

"Although IKEA sales have decreased due to a decrease in visits to stores, the Company has succeeded in significantly reducing losses compared to the same period the year it went through various effective cost-saving initiatives," he explained.

Hadrianus said that IKEA continues to focus on increasing store attraction, optimizing layouts, and repairing shopping tools.

Therefore, Hadrianus conveyed that ongoing efforts to increase product availability include review of imported models, increasing local resources, and supply chain adjustments, supported by more effective marketing strategies to improve local relevance.

According to Hadrianus, the company has succeeded in carrying out business transformation by completing the divestment of the Hero Supermarket segment to its affiliate, PT Hero Retail Nusantara, at the end of June 2024. After this transaction, the Company's operations fully focused on the Guardian and IKEA business in Indonesia.

"During the first nine months, the Company also managed to sell three non-core properties, which further strengthened its financial position," he said.

Hadrianus said the company was optimistic that the Health and Beauty segment would continue to grow positively, supported by an increasing healthy lifestyle trend.

Meanwhile, Hadrianus said IKEA will continue to strive to improve performance amid increasingly fierce competition. With a sharper focus on business and the right strategy, the Company believes it can achieve sustainable growth in the long term.