Jakarta, 18 April 2022 – PT Erajaya Swasembada, Tbk. (ticker code: ERAA. IJ) released its financial statements for the full year 2021, recording profit attributable to the parent company of IDR 1 trillion or an increase of 65.4% YoY. This achievement was accompanied by a sustainable growth trend with an increase in net sales of 27.4% YoY.
Some summary of ERAA's financial performance for the full year 2021, as follows:
• Growth in net profit for the year attributable to owners of the parent company by 65.4% YoY from Rp 612 billion as of FY 2020 to Rp 1.0 trillion as of FY 2021.
• Sales growth of 27.4% YoY from IDR 34.1 trillion per FY 2020 to IDR 43.5 trillion as of FY 2021.
• The company's gross margin grew from 10.0% in FY 2020 to 11.1% in FY 2021.
Hasan Aula, Deputy President Director of PT Erajaya Swasembada Tbk, said, “Erajaya Group managed to record a net profit of Rp 1.1 trillion or an increase of 65.4% compared to the previous year. This is a remarkable achievement and is greatly appreciated. The pandemic condition did not dampen Erajaya from continuing to improve its performance to be better from year to year. Erajaya recorded positive sales of IDR 43.5 trillion throughout 2021, an increase of 27.4% from the previous year, indicating that market demand for handset products is still in demand. This can also be seen in the growth in handset sales volume from 10.2 million handsets sold in 2020 to 11.4 million handsets in 2021.”
“The implementation of IMEI registration in 2020 has succeeded in changing the landscape of the handset industry in Indonesia, especially in terms of price stability and gross margin, stock availability in the market and also healthier competition between market players. Erajaya Group also sees an increase in the diversity of the product portfolio offered, especially from the smartphone category and its ecosystem, being able to increase the Company's overall margins, and have a positive impact on gross profit margin growth from 10.0% in 2020 to 11.1% in 2021," added Hasan.
Continuing its commitment to continue to grow, Erajaya continues to expand its footprint even in the midst of a pandemic with the addition of 289 outlets throughout 2021. As of December 31, 2021, Erajaya already has 1,218 retail outlets with 88 distribution points, as well as collaboration with more than 66,000 resellers in Indonesia, Malaysia and Singapore.
Erajaya is also committed to improving overall business performance and expansion. To support the group's business portfolio diversification strategy, Erajaya developed business expansion outside of the main business, such as expansion into the food & beverage business line, sports lifestyle apparel, healthcare & beauty as well as computer & consumer electronics. Erajaya has formed 4 (four) verticals that will focus on each line of business. Information and some updates on the new line of business are as follows:
- Erajaya Digital
A vertical business that focuses on core business, namely smartphones and computers and consumer electronics. In early 2022, Erajaya announced Joint Venture Partnership with Mobile World Group, the leader of the consumer electronics retail business in Vietnam, to jointly develop the consumer electronics business in Indonesia, under the name Era Blue.
- Erajaya Active Lifestyle
A vertical business that focuses on IoT (Internet of Things) products, its ecosystem and lifestyle products in mid-2021, Erajaya Group announced Joint Venture Partnership with JD Sports Fashion Plc to open retail store under the name JD Sports which focuses on sports fashion apparel products. Currently, JD Sports Indonesia has 2 outlets at Mall Kelapa Gading and Lippo Mall Puri and plans to open several other locations in the near future.
- Erajaya Food & Nourishment
A vertical business that focuses on the food & beverages (F&B) industry, and has been:
• Formed a Joint Venture Partnership with Grand Lucky Group to open a grocery store under the name Grand Lucky and currently has 2 stores located in Sanur Bali and Mall of Indonesia.
• Formed a Joint Venture Partnership with Paris Baguette to open a Paris Baguette café-bakery in Indonesia. Currently, it has 4 stores located in Astha District 8, Senayan City, Pondok Indah Mall and Summarecon Mall Bekasi.
• Invest in the form of share ownership in Sushi Tei Group.
- Erajaya Beauty & Wellness
A vertical business that focuses on healthcare and beauty products. In addition to operating a cosmetic retail network from South Korea, The Face Shop, this vertical at the end of last year formed a Joint Venture Partnership with Caring Pharmacy from Malaysia to open a Wellings Pharmacy in Indonesia.
Hasan added, “Erajaya reaffirms its commitment to increase shareholder value by expanding into new business lines. The addition of this new business line will be supported by assets, infrastructure and know-how to encourage and achieve the expected business scale in order to create optimal performance. This commitment is the foundation for Erajaya to be able to provide customer satisfaction by providing a variety of products and services that are in line with modern trends and lifestyles."