Jakarta, 7 April 2021 – PT Erajaya Swasembada, tbk (ticker code: ERAA. IJ), one of the largest handset distributor and retail companies in Indonesia, has just released its 2020 financial report. During the COVID-19 pandemic throughout 2020, ERAA managed to maintain and even record a stellar performance with growth of profit atrributable for the parent company of 107.4% YoY and revenue increase of 3.5% YoY.
Summaries of ERAA's financial performance for the period 2020 are as follows:
- Profit growth for the year attributable to owners of the parent company by 107.4% YoY from Rp295.1 billion in 2019 to Rp612.0 billion in 2020
- Sales growth of 3.5% YoY from Rp 32.9 trillion in 2019 to Rp 34.1 trillion in 2020
- Company’s gross margin grew from 8.6% in 2019 to 10% in 2020
Hasan Aula, Vice President Director of PT Erajaya Swasembada Tbk, said, "We are proud to say that the Company has managed to maintain its momentum of performance in 2020 with an increase in net profit of Rp 612.0 billion, or more than 2x growth compared to last year’s Rp 295.1 billion. In addition, sales also grew by 3.5% YoY to Rp 34.1 trillion. This remarkable achievement is a result from the implementation of proper strategies to move forward and thrive in challenging times, such as the pandemic conditions that we experienced throughout 2020. We also cannot deny that this is the result of innovation, commitment, focus and hard work of our team to drive sales and take advantage of all the opportunities that exist, with the proper utilization of digital solutions."
"In addition, the Company also sees the positive momentum of smartphone sales and its ecosystem, also driven by the increased on demand in electronic products and other technologies, like the Internet of Things (IoT). In 2020, we saw some changes in Indonesia handset industry as a result of the implementation of the IMEI regulation in September 2020. The Company, as one of the official handset player in Indonesia, highly welcomes the implementation of this regulation, because it will make the competition healthier with a more controllable and stable price. It is also will impact on increasing margin of the Company, which would increase the Company's earnings as overall, "said Hasan.
Corporate strategies referred to above include:
- Development of Omnichannel capabilities by utilizing digital technology, such as O2O initiatives, mobile selling, EraExpress services, Click 'n Pick-Up, online promotion programs based on e-commerce platforms and official stores in the marketplace.
- Retail footprint expansion, bringing the total outlets reaching 1,053 stores, 88 distribution channels and cooperation with more than 65,000 resellers.
- Business development outside the core gadget business and increasing focus on Internet of Things products and their ecosystem also expansion into new business verticals that have the potential to contribute positively to the company. Partnerships with leading brands such as Garmin, DJI, GoPro are constantly being enhanced.
In addition, there are also several external factors that create conducive macro conditions in 2020, such as:
- The implementation of IMEI registration by the Government of Indonesia per September 2021 creates more conducive and healthier business map. With price stability due to the loss of BM (black market) goods, small and medium entrepreneurs, such as dealers and retailers, in the Company's network is able to run their business with more calm and stable.
- The limitation of social activities during the pandemic, including WFH (work from home) and SFH (school from home) increases the need for qualified and quality support devices.
Hasan reaffirmed, "We are committed to continuously increasing shareholder value, by carrying out corporate actions that are right on target and taking advantage of external factors which open up new opportunities. With innovation and the use of appropriate technology to support our core business, as well as carefully capturing new business opportunities, in order to provide stable performance and improve our services in the future."
* The data presented is accurate as of December 31, 2020