Jakarta, 1 August 2023 – PT Erajaya Swasembada, Tbk. (ERAA. IJ), one of Indonesia's largest handset distributor and retailer, has released its financial results for the first six months of 2023. The company has maintained positive growth, reflected by a 23.5% increase in net sales.
Several highlights of ERAA's financial performance for the first semester of 2023 are presented below:
- Sales increased by 23.5% year on year, from IDR 23.4 trillion in 1H22 to IDR 28.9 trillion in 1H23.
- The company's gross profit margin increased to 10.7% in 1H23.
- In 1H23, the net profit attributable to parent entity owners was IDR 458.7 billion.
Hasan Aula, Deputy Main Director of PT Erajaya Swasembada Tbk, said, "Erajaya believes that the condition of the retail sector in Indonesia at the beginning of this year will continue to provide a positive trend amid uncertainty due to the global economic slowdown. Along with the move to endemic, we should expect significant revenue growth as a result of increasing community mobility. Erajaya experienced a surge in activity during semester I of 2023, particularly in the weeks coming up to Eid and the start of a new school year. At the same time, Erajaya continues to expand its retail network by adding 323 new stores in Semester I of 2023, in accordance with the Erajaya Group's commitment to expand its business and network."
In line with the retail footprint expansion strategy, Erajaya had 1,944 shops across Indonesia, Singapore, and Malaysia as of 30 June 2023, supported by 100 distribution facilities and over 68,000 third-party retail stores. Furthermore, the company's collaboration with retail partners through the Erafone Cloud Retail Partner program is expanding, with 61 new locations opening across Indonesia. In the meantime, Erajaya continues to develop its omnichannel strategy to reach more customers through owned e-commerce service, Eraspace.com and through collaboration with other platforms. MyEraspace has 8.3 million users, a 63% increase over the same period last year; this milestone demonstrates the growing customer demand for Erajaya's omnichannel platform.
In addition, Erajaya is dedicated to maximize shareholder value by strengthening business value and distributing cash dividends of IDR 299 billion for the fiscal year ending December 31, 2022 based on AGMS results.
"We will continue our business expansion to enter unexplored markets in Indonesia by strengthening existing businesses, and exploring new opportunities. Erajaya currently has four main business lines: Erajaya Digital which focuses on handsets, Erajaya Active Lifestyle which focuses on IoT, Accessories and lifestyle related products, Erajaya Food & Nourishment which focuses on the F&B and grocery store business, and Erajaya Beauty & Wellness, which focuses on beauty and wellness products. In the long run, we hope that Erajaya will be able to achieve sustainable growth, strengthen our fundamentals, and increase the whole company's value. This is done prudently, of course, by observing global economic events and regularly analyzing the company's suggested strategy," Hasan explained.
In accordance with the Company's strategy to maximize its competitive advantage, one of Erajaya's business verticals, PT Sinar Eka Selaras Tbk (ticker code: ERAL) or Erajaya Active Lifestyle (EAL), is holding an IPO on the Indonesia Stock Exchange, offering up to 20% of its shares to the public on August 2 - 4, 2023, followed by listing on the Indonesia Stock Exchange (IDX) on August 8, 2023. ERAL is an issuer that is part of the Erajaya Group and is a leading multi-brand retail and distribution solution provider in Indonesia. ERAL offers a diverse brand portfolio in three categories: accessories (Ecosystem), Internet of Things (IoT), and sportswear, fashion, and outdoors.
About Erajaya Group:
PT Erajaya Swasembada Tbk (Ticker code: ERAA. IJ) was founded in 1996 and is a company that imports, distributes, and develops retail networks in the telecommunications equipment and mobile productivity sectors, consumer electronics, active and outdoor lifestyle products, beauty and wellness, and F&B and supermarkets. Erajaya became a public company in 2011 and sold its shares on the Indonesia Stock Exchange, making it one of the largest and most reputable companies in its industry in Indonesia. Erajaya is celebrating its 27th anniversary this year.