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Matahari Reports Progress on Its Initiatives

30 November 2023
Corporate Communications
Matahari Reports Progress on Its Initiatives

Through the Public Expose Live 2023 (“Pubex Live 2023”) organized by the Indonesia Stock Exchange (IDX), Matahari (“the Company”; stock code: “LPPF”) remains committed to engaging with the investment community and providing visibility and accessibility to local investors. Matahari appreciates the opportunity to use the platform to present to investors about its performance updates, challenges faced and opportunities to tap into, as well as growth plans. The Company expects to build trust and maintain a strong relationship with its shareholders.

In the first nine months of 2023, Matahari earned sales of IDR 9.6 Trillion, reflecting a growth rate of 1.4%. The Same-Store Sales Growth (SSSG) was -2.3% due to the lack of Lebaran stimulation and the softness in the economy. Matahari's EBITDA for the period was IDR 1.1 Trillion, a decrease compared to IDR 1.5 Trillion last year.

Overall merchandise productivity will be enhanced by maximizing inventory sell[1]through at full price. Efforts to maximize merchandising full potential are progressing well, with the brand new label Suko well on track to grow beyond its 20 stores to the next 14 stores, for a total of 34 stores by the end of 2023. A new private label, Anyday, was launched in October 2023 to counteract the impact of inflation for consumers.

Initiatives to optimize the store network are progressing well. The Company has identified a small number of stores with marginal profitability, which will be closely monitored under a newly formed watchlist. Expansion in 2024 will prioritize high-quality stores over an increase in the number of stores opened. In 2024, Matahari plans to open six stores, with four being the latest Matahari concepts and two being MU&KU stores. The MU&KU concept, catering to the upper-middle segment, has been introduced to target developers and is expected to be launched in the first half of 2024. Matahari intends to advance store rebranding efforts and allocate capital expenditure towards higher-potential stores.