ACES - Faces rising operating costs challenge

ACES - Faces rising operating costs challenge Aspirasi Hidup Indonesia (ACES) is pursuing aggressive store expansion beyond Java to boost nationwide sales, aiming for 25–30 new outlets in 2025, with 4 stores already opened in 1Q25. The company targets 5% yoy sales growth and 1% SSSG. Expansion outside Java is expected to enhance margins due to lower competition and operating costs. However, rising operational expenses, including higher labor costs during Ramadan and marketing for rebranding from ACE to AZKO, have pressured profits. Note that, ACES net income dropped 31.1% yoy to IDR142 bn in 1Q25 despite a 7.2% yoy rise in revenue to IDR2.14 tn. (Source : Kontan)