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Retail Trade

PT Hero Supermarket Tbk

Company Background

Hero Supermarket is one of Indonesia's largest retailers. Established in 1971, it runs several brands, including the country's largest supermarket chain, Guardian drug stores and Giant hypermarkets. It operates around 700 stores in total, the majority located in Jakarta's metropolitan areas. It focuses on middle-income segment customers.

The majority of Hero's shares are indirectly owned by Jardine Matheson Holdings, a Hong Kong-based conglomerate with interests in the Mandarin Oriental hotel chain and Indonesia's largest automotive distributor, Astra International. Its board of directors and commissioners is cosmopolitan. President Stephane Deutsch is French, and the former chief of Carrefour Malaysia.

Hero has recently been hit by falling profits in the face of competition, rising wages and a decline in the Indonesian rupiah. The company recently signed a franchise agreement with Ikea, the Swedish furniture maker, in an effort to diversify. Ikea opened its first Indonesian store in October.

Business Summary

PT Hero Supermarket Tbk engages in the management and operation of supermarkets, hypermarkets, and minimarkets. It operates through the Food and Non-Food segment. The Food segment consists of supermarket and hypermarket stores. The Non-Food segment relates to retail operations such as pharmacy, drugs stores, health and beauty stores, and home furnishing. The company was founded by Muhammad Saleh Kurnia on October 5, 1971 and is headquartered in Tangerang Selatan, Indonesia.

Financial Highlights

Dec 2019 IDRUSD
Revenue12,267.78B867.49M
Gross Profit3,327.74B235.31M
Operating income108,844M7.69M
Income before tax55,728M3.94M
Net income70,636M4.99M
EBITDA327,602M23.16M
Diluted EPS16.880.00
Dividends Per Share00
Total Assets6,054.38B436.11M
Total liabilities2,164.33B155.90M
Total equity3,890.05B280.21M
Operating cash flow10,768M0.76M
Currency in IDRCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 14,352.70B 13,677.93B 13,033.63B 12,970.38B 12,267.78B
Gross Profit 2,896.36B 3,152.08B 3,022.38B 3,254.79B 3,327.74B
Operating income -187,403M 20,178M -272,883M -100,902M 108,844M
Income before tax -91,184M 184,449M -251,647M -1,252.99B 55,728M
Net income -82,222M 152,281M -191,406M -1,250.18B 70,636M
EBITDA 242,751M 438,521M 147,183M 338,803M 327,602M
Diluted EPS -34 29 -46 -298.82 16.88
Dividends Per Share 0 0 0 0 0
Total Assets 8,042.79B 7,487.03B 7,363.14B 6,154.74B 6,054.38B
Total liabilities 2,828.41B 2,029.25B 2,164.40B 2,330.37B 2,164.33B
Total equity 5,214.37B 5,457.78B 5,198.74B 3,824.37B 3,890.05B
Operating cash flow 662,579M 415,853M 542,268M 506,890M 10,768M
 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 1,071.31M 1,028.38M 973.98M 911.04M 867.49M
Gross Profit 216.19M 236.99M 225.85M 228.61M 235.31M
Operating income -13.98M 1.51M -20.39M -7.08M 7.69M
Income before tax -6.80M 13.86M -18.80M -88.01M 3.94M
Net income -6.13M 11.44M -14.30M -87.81M 4.99M
EBITDA 18.11M 32.97M 10.99M 23.79M 23.16M
Diluted EPS -0.00 0.00 -0.00 -0.02 0.00
Dividends Per Share 0 0 0 0 0
Total Assets 583.44M 555.72M 542.70M 428.00M 436.11M
Total liabilities 205.18M 150.62M 159.52M 162.05M 155.90M
Total equity 378.26M 405.10M 383.17M 265.95M 280.21M
Operating cash flow 49.45M 31.26M 40.52M 35.60M 0.76M

Valuation Measures

Dec 2019
PER52.71
ROA1.15%
ROE1.83%
Operating margin0.88%
Profit margin0.57%

Key executives

  • President Director: Ingemar Patrik Lindvall
  • Finance Director: Erwantho Siregar
  • Director: Dina Sandri Fani
  • Head-Internal Audit: Sonny Ariesta Junada
  • Secretary: Iwan Nurdiansyah

Shareholders

  • Dairy Farm International Holdings Ltd. (88.5%)
  • PT Hero Pusaka Sejati (2.6%)
  • First State Investments (Singapore) (2.3%)
  • First State Investments (Hong Kong) Ltd. (0.6%)
  • Wellington Management Co. LLP (0.1%)
  • Wellington Management Hong Kong Ltd. (0.1%)
  • Lion Global Investors Ltd. (0.0%)

Contact Details

  • Website:http://www.hero.co.id
  • Address: Graha HERO, CBD Bintaro, Sektor 7 Blok B7/A7, Tangerang Selatan, 15224, Indonesia
  • Phone: +62.21.8378.8388

Related Companies

  • Koninklijke Ahold NV /Indonesian Operations/

Competitors

  • PT Sumber Alfaria Trijaya
Last Updated on 20 Oct, 2020

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