JAKARTA (TheInsiderStories) - Retail company, PT Sumber Alfaria Trijaya Tbk (IDX: AMRT), announced to refinances the debt with total amount of Rp1.01 trillion (US$69.44 million) from the internal cash. The notes issued by the operator of Alfamart in 2018 will mature on April 12 and has coupon rate 7.5 percent per year.
Beside prepared funds for debt refinancing, in this year, the issuer prepared capital expenditure of Rp2.5 trillion to adding new outlets across the archipelago. According to the director, Solihin, the retail-chain operator aimed to open around 750 new outlets in 2021. Until the third quarter of 2020, the number of Alfamart outlets recorded 15,102 units.
Sumber Alfaria also targeting to improve the digital services through Alfamart digital platform (Alfagift). The mini market provider also developed a new concept stores called Alfaexpress and Alfa X. Alfaexpress carried the concept of a convenience store with a more modern appearance and provides local flavor products with friendly service.
While, Alfaexpress is in specific locations such as stations, rest Areas, airports, ports, train station, offices, and hospitals. The retailer also continues to develop its work abroad. In November 2020, the company has inaugurated the 1,000th outlet in the Philippines after started the investment in 2014 in the neighboring country.
Some analysts rated, food and beverages, mini-markets, and food delivery are expected to recover quickly after the pandemic, while, retail, automotive and property will take longer time to recover. Sukarno Alatas, an analyst from Kiwoom Sekuritas Indonesia, the fast recovery experienced by retailers was due to the fact that the outlets provided the basic necessities needed by the community.
During last year, three major retail companies, PT Matahari Department Store Tbk (IDX: LPPF), PT Ramayana Lestari Sentosa Tbk (IDX: RALS), and PT Hero Supermarket Tbk (IDX: HERO) posted a poor performances. Most of their financial reports suffered due to the implementation of the large-scale social restrictions by the local government to fight the virus outbreak.
In the third quarter of 2020, Matahari posted a net loss of Rp616.60 billion from a year ago still pocketed a net profit worth of Rp1.18 trillion. The company’ revenues also decreased by 57.49 percent in annual basis (YoY) from Rp7.82 trillion to Rp3.32 trillion.
According to CEO and VP director, Terry O’Connor, caused of this limitation, the unit of Lippo Group had closed seven large format outlets and all outlets to make an efficiency due to high operational costs during the COVID-19 pandemic. The other retailer, Ramayana also scored a loss of Rp95.21 billion in nine months (9M) of 2020, reversed with last year pocketed a net profit of Rp612.42 billion.
The main cause of this loss was the significant decrease in sales from Rp4.43 trillion to Rp1.90 trillion in annual basis (YoY). While, Hero also posted a net loss Rp339.46 billion at the end of September, increased many times from last year’ position was valued at Rp6.68 billion. The revenues decreased 27.65 percent (YoY) to Rp6.86 trillion from the same period of last year stood at Rp9.48 trillion.
The management said that during the pandemic, the company experienced significant challenges due to the implementation of the large-scale social distancing and changes in customer spending patterns. The wholesale, health and beauty businesses were significantly affected by the pandemic, said the company.
“PSBB (large-scale social restriction) causes changes in customer shopping behavior and product demand patterns and also has an impact on decreasing visits to the company’ stores inside the mall,” wrote Hero Supermarket.
So far, all company-owned retail stores such as Hero, Guardian and IKEA have been affected due to reduced operating hours, closings of several malls, strict trade restrictions on complementary businesses and limitation of customer visiting capacity.
US$1: Rp14,400
Written by Editorial Staff, Email: theinsiderstories@gmail.com
