ERAA – A 27.26% yoy net profit decline in 9M23

ERAA – A 27.26% yoy net profit decline in 9M23 Erajaya Swasembada (ERAA) posted sales of IDR42.81 tn (+22.53% yoy) in 9M23. The increase in sales is driven by more retail outlets with online sales or through its omni-channel services and the expansion of new business lines. Currently, the largest revenue comes from Erajaya Digital. However, ERAA's net profit decreased 27.26% yoy to IDR494.83 bn in 9M23. The decline in profit was due to increased cost requirements in retail network expansion. As of September 23, ERAA already has more than 2,000 units of outlets in Indonesia, Singapore and Malaysia. ERAA also continues to hold promo programs at these outlets to encourage productivity. Towards the end of 2023, ERAA chose to be more cautious in adding outlets. Throughout 9M23, ERAA absorbed IDR712 bn of capex, dominated by the opening of 323 new stores from 4 business verticals. This year, ERAA targets 400 store openings with a capex of IDR700 bn (already overbudget). (Source: Kontan)