Destroyed By Matahari Department Store In 2020, This Lippo Group Retailer Loses IDR 823 Billion And Will Close 6 More Stores

Matahari Department Store Outlet, (Photo: Matahari Dept. Store)

JAKARTA - Lippo Group's retailer, PT Matahari Department Store Tbk, reported their performance in 2020. Amid the chaotic retail business amid the COVID-19 pandemic, Matahari Dept Store was also affected by posting a decline in performance in 2020.

Quoting from the information disclosure page of the Indonesia Stock Exchange (IDX), Tuesday, February 2, the management of the LPPF-coded issuer explained that the company's gross sales in 2020 reached IDR 8.6 trillion. This value decreased 52.3 percent year on year (yoy) from IDR 18.03 trillion in 2019.

Gross profit also decreased 54 percent to IDR2.82 trillion from IDR6.12 trillion previously. The EBITDA or profit before tax for this Matahari outlet manager is minus IDR 22 billion compared to IDR 2.21 trillion in 2019.

As a result, Matahari recorded a net loss of IDR 823 billion in 2020. This value is far inversely proportional to the profit of IDR 1.37 trillion in 2019.

Furthermore, Matahari Dept Store operates 147 stores in 2020. However, in the fourth quarter of 2020, they closed 4 unprofitable outlets, so that in 2020 the company closed 25 stores.

Source: Matahari Department Store report on the IDX website

Meanwhile, 23 stores out of 147 are on the watch list. In fact, reportedly, the management will close 6 outlets of the 23 stores on the watchlist by 2021.