MATAHARI ACHIEVES H1 2022 EBITDA OF IDR 1.3T, EQUIVALENT TO FULL YEAR 2021 EBITDA

• RECORDS A 72.5% INCREASE IN NET INCOME IN H1 2022
• UPGRADES ITS EBITDA GUIDANCE

Highlights :

• Strong H1 performance in spite of Omicron-related operating restrictions helps deliver full year 2021 EBITDA of IDR 1.3 Trillion in first 6 months of 2022
• Sales were IDR 7.2Trillion, with SSSG of 10.9% and gross margin at 36.0% (vs 34.9% in H1 2021)
• Net Income for H1 2022 was IDR 918 Billion vs IDR 533 Billion in H1 2021
• Opened new concept store at Mall Taman Anggrek Jakarta bringing new store openings to 2 in H1 2022. Relaunched Karawaci store with new concept on 8th July 2022
• FY 2022 EBITDA guidance upgraded from IDR 2 Trillion to IDR 2.1 Trillion on strong H1 performance and strong July sales trend
• FY 2023 guidance of double-digit sales and earnings growth
• Cancellation of 262 Million treasury shares to result in 2,356 Million total outstanding shares
• Forward full year dividend payout enhanced to IDR 525 per share or more on the back of improving prospects and strong forward cash flow generation.

PT Matahari Department Store Tbk (“Matahari” or “the Company”; stock code: “LPPF”) reported gross sales of IDR 7.2 Trillion for the period ending 30 June 2022, 9.2% above the same period in 2021.

(in Billion Rupiah)

Successful Lebaran trading helps deliver Full Year 2021 EBITDA of IDR 1.3 Trillion in 6 months of 2022, the same as for the full year of 2021, and a net income of IDR 918 Billion, compared to IDR 532 Billion in H1 2021. Supported by a strong July sales trend, the Company upgraded its FY 2022 EBITDA guidance from IDR 2 Trillion to IDR 2.1 Trillion, and expects double-digit revenue and earnings growth for FY 2023. In line with this, the Company is upgrading its full-year dividend projection to IDR 525 per share or more with payout on an annual basis.

Matahari also opened a new concept store at Mall Taman Anggrek Jakarta in the period bringing new store openings to 2 in H1 2022, and relaunched its Karawaci store with a new, modern concept on 8th July 2022. The Company further accelerated planned store openings with 8 due in the second half of the year with contractual visibility on the next six in Tangerang (Banten), Gowa (South Sulawesi), Bondowoso (East Java), Semarang (Central Java), Kendari (South East Sulawesi) and Bontang (East Kalimantan). These openings will make the total number of stores to be trading nationwide as 148 by the end of 2022. The Company is developing its 2023 store opening pipeline of 12-15 stores and thus confident of further growth ahead.

"The tangible evidence of progress is reflected in the entry of our shares to the MSCI Small Cap Index¹ in May 2022 and is a motivating force for us to continue to enhance business results and investor engagement. Our well curated customer-led merchandising ranges are leading to an ongoing overhaul of our key private labels at healthy margins as well as rationalization of brands and product groups, leading to improved sales and higher productivity. We will continue to focus on improving the merchandise offering to our customers, operational excellence, cost rigor to drive superior results whilst enhancing the capabilities of our people, and managing our business and resources in the most sustainable way. As a reflection of our confidence in our core business, we have no planned acquisitions or investments and we believe this focus will help us deliver double-digit growth in sales and profits for next year", said Terry O'Connor, CEO of Matahari.