Welcome to the season of reflection, generosity, and unparalleled shopping opportunities—Ramadan is here!
As the crescent moon ushers in this holy month, the air fills with anticipation, not just for the spiritual journey ahead but for the avalanche of 'Special Ramadan' promotions that beckon from every corner.
Ramadan, a time celebrated for its profound spiritual significance, also spins the wheels of commerce in an extraordinary dance of supply meeting demand with open hearts and wallets.
Enter Alfamart, a titan in the retail space, who has skillfully tapped into the Ramadan spirit with its eye-catching 'Special Ramadan' promotions.
In the past week alone, Alfamart has transformed the shopping experience with an array of enticing deals ranging from price discounts to cashback offers, especially for those who lean into the convenience of digital payments through apps like OVO or GoPay.
In a recent financial revelation, AMRT has gracefully navigated through the economic waves to anchor a remarkable revenue of IDR 106.94 tn, marking a 10.34% ascent from the previous year's IDR 96.92 tn.
This financial feat is not just a number—it's a testament to AMRT's adeptness in captivating the market's palate, particularly through its food segment, which deliciously contributed IDR 75.65 tn to the revenue pool, up by a savory 12.36% yoy. The non-food segment, not to be outdone, brought in IDR 31.28 tn, registering a 5.73% yoy increase.
Interestingly, sales through Alfa for Cimory products ticked up from 13% to 14%, even as Indomaret saw a slight decrease from 25% to 23%.
Source: Cimory
This points to AMRT's strong performance, especially when considering the broader FMCG sector's struggle to hit double-digit growth. In contrast, Alfa not only reached but exceeded this mark, boasting a 10.3% growth in sales for the products it carries.
Alfamart has hit a decade high in its GPM, reaching a robust 21.6%. This peak performance signals Alfamart's success in meeting supplier targets, unlocking substantial cashbacks in the process.
Source: Bloomberg
Riding on this wave, Alfamart's net profit soared to IDR 3.4 tn, marking a 19.2% increase from 2022's IDR 2.8 tn, and setting a new record with the highest NPM in its history at 3.15%.
Source: Bloomberg
Despite a slight uptick in operating expenses relative to sales, the impact remains well within control, maintaining an NPM above the 3% threshold.
This increase essentially normalizes their operating expenses to sales ratio at 18.5%, rectifying last year's anomalous figures. Costs such as salaries, water and electricity, transportation, and distribution have surged by over 15%, in contrast to a sales increase of 10.3%.
This showcases Alfamart's savvy in market penetration and its ability to negotiate better deals with suppliers, enhancing its profit margins.
We continue like Alfamart because Alfamart's strategy not only expands its market reach but also strengthens its bargaining position with suppliers, ensuring greater margins and a healthier bottom line. Simple, yet effectively powerful, Alfamart's approach is a testament to its resilience and strategic acumen in the ever-competitive retail landscape