Lippo Group Retailer Matahari Department Store Admits It Will Still Be 'smashed' Until 2022

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

JAKARTA - Lippo Group's retailer PT Matahari Department Store Tbk admits that its performance will still be at the normal threshold because the effects of the COVID-19 pandemic have not subsided. The company coded LPPF shares believes that their performance will only improve ahead of 2022.

"We believe that it is highly unlikely that sales will return to normal before 2022. Our focus now is to keep our customers and employees safe", said Matahari's Chief Financial Officer, Niraj Jain, quoted from the disclosure of information on the Indonesia Stock Exchange (IDX) website, Thursday, February 18th.

Niraj explained, Matahari posted gross sales of IDR 8.6 trillion for the year ended 31 December 2020 or 52.3 percent lower than last year. Matahari's net income also fell 52.9 percent to IDR 4.8 trillion.

"COVID-19 has had an impact that was not previously anticipated for businesses around the world, including Matahari", said Niraj.

Throughout 2020, the Sun operates in an environment with a very high level of uncertainty. In March, Matahari temporarily closed almost all outlets and then reopened gradually in May.

In mid-September, restrictions were introduced again which resulted in store closings and limits on operating hours, as well as restrictions on the number of subscribers. Matahari took several steps cautiously, namely opening 3 new large-format outlets and closing 13 unprofitable large format outlets.

"While preparing for a recovery that can come at any time, our team sticks to 'Safe Shopping' and serves customers with strict health protocols", he explained.