AMRT - Outside Java' stores continue to support business growth

AMRT - Outside Java' stores continue to support business growth Sumber Alfaria Trijaya’s (AMRT) expansion beyond Java supports its long-term growth prospects amid challenges in consumer purchasing power. From 2019 to 2023, its store network grew at a CAGR of 8.4% to 22,310 stores, with non-Java locations expanding faster at 11.2% CAGR, reaching 7,362 stores. This growth is driven by regional economic development, lower labor costs, and affordable rental expenses. Additionally, AMRT's warehouse expansion enhances supply chain efficiency, particularly for high-margin frozen food. However, operational expenses are expected to rise following the establishment of three new distribution centers (DCs) in Q3-2024, impacting leverage into early 2025. The company also plans to open two more DCs in Palangkaraya and Bengkulu in the second half of 2025. Note that, AMRT’ revenue and net profit grew, 10.24% yoy to IDR88.2 tn and 9.79% yoy to IDR2.5 bn, respectively in 9M24. (Source : Kontan)