AMRT - Earnings grew 19.2% yoy in 2023

AMRT - Earnings grew 19.2% yoy in 2023 Sumber Alfaria Trijaya' (AMRT) revenue grew 8.6% yoy/2.8% qoq to IDR26.92 tn in 4Q23, which was driven by higher food/groceries' sales (+7.1% yoy/+6.7% qoq) and non-food' sales (+12.5% yoy/-5.8% qoq). Moreover, AMRT succeeded to open 1,843 new stores in 2023. As a result, AMRT' revenue grew 10.3% yoy in FY23 due to a 12.4% yoy and 5.7% yoy increase in its groceries' and non-food' sales, respectively. Thanks to higher sales with better product mix, AMRT' gross profit grew 15.2% yoy in FY23, despite a 9.1% yoy increase in its cost of goods sold (COGS). All in all, AMRT' earnings grew 19.2% yoy in FY23, due to higher other income and better cost management, which came in-line with ours' (98.9%) but slightly below consensus' (95.9%) expectation. (Source: Company, KBVS) Comment : We expect AMRT will continue its good performance this year due to a better purchasing power from low-mid income segment on higher minimum wage, Presidential and general elections.