AMRT – Store expansions to support growth

AMRT – Store expansions to support growth Sumber Alfaria Trijaya (AMRT) will continue with its store expansions' plan to support its business growth. This year, AMRT expects to open around 1,000 new stores, which mostly in outside Java area that could increase AMRT' SSSG and expand its margins. AMRT also plans to open 2 new distribution centers in Gorontalo and Palopo, which are expected to help stabilizes its distribution costs. At the same time, AMRT will continue with its digital innovations by optimizing Alfagift application for its omnichannel. In 1Q24, AMRT' revenue reached IDR29.33 tn (+8.9% qoq/12.1% yoy) with higher contribution from its groceries' segment, but its gross margin contracted qoq due to more marketing, promotion and discounts during Ramadan and Eid festivities. AMRT' transportation and distribution costs also increased by 5.6% yoy to IDR353 bn, in 1Q24. All in all, AMRT' net profit grew 14.8% yoy to IDR890.13 bn, in 1Q24. (Source : Kontan)