ERAA - Aggressive expansion and IDR472 bn capex utilized

ERAA - Aggressive expansion and IDR472 bn capex utilized In 2023, Erajaya Swasembada (ERAA) has been actively expanding its retail presence by inaugurating 323 new outlets across its four vertical businesses. This year, ERAA aims to establish an additional 400 outlets under various retail brands. At the beginning of 2023, ERAA allocated approximately IDR700 bn for capex, with IDR472 bn already utilized, primarily for opening new stores. Erajaya recently inaugurated the Erajaya Digital Complex (EDC) on September 16, 2023. Covering 2 hectares in the Pantai Indah Kapuk 2 (PIK 2) area. EDC is touted as a digital lifestyle hub, providing a comprehensive one-stop shopping experience within the largest retail space. Financially, ERAA has maintained positive growth, with net sales reaching IDR28.9 tn (+23.5% yoy) in 1H23, but net profit fell 9.6% yoy at IDR458.7 bn due to higher interest expense. (Source: Kontan)