PT Aspirasi Hidup Indonesia (ACES) Q2 2024 earnings summary

Executive summary

• Net sales for 1H 2024 reached Rp4.13 trillion, up 13.8% year-over-year, with net income of Rp361.4 billion, reflecting strong growth in retail operations.

• Operates 239 stores across 64 cities and 28 provinces, focusing on household and lifestyle products, with continued expansion and renovations.

• Completed rebranding from PT Ace Hardware Indonesia Tbk to PT Aspirasi Hidup Indonesia Tbk in June 2024.

• Declared and paid a cash dividend of Rp33.50 per share, totaling Rp573.5 billion, in June 2024.

• Focused on omni-channel retail, digital transformation, and new store concepts to enhance customer experience.

Financial highlights

• Net sales reached IDR 4.1Tn in 1H 2024, up 14% year-over-year, with consignment sales net at Rp75.4 billion.

• Gross profit rose 14% year-over-year to IDR 2Tn; gross margin at 48.6%.

• Operating profit increased 22% year-over-year to IDR 474Bn; operating margin 11.5%.

• Net profit grew 21% year-over-year to IDR 366Bn; net profit margin 8.8%.

• Basic earnings per share increased to Rp21.38 from Rp17.68 in the prior year period.

Outlook and guidance

• 2024 guidance targets SSSG ≥7% and sales growth ≥10%.

• Plans to add 15-20 new stores and invest Rp 200-250Bn in CAPEX.

• Management committed to opening at least two new stores annually as per license agreement.

• Emphasis on core operational excellence and optimized capital deployment.

• Evaluating impact of new accounting standards effective from 2024 and 2025.