Ace Hardware Indonesia's Sales in 2017 Exceed Expectations
Indonesian retail company Ace Hardware Indonesia reported a 33 percent month-on-month (m/m) increase in sales to IDR 647 billion (approx. USD $48.3 million) in December 2017. On an annual basis, the company's sales rose 18 percent (y/y) in the last month of 2017.
Although unofficial, we can now conclude that Ace Hardware Indonesia's full-year 2017 sales reached around IDR 5.8 trillion (approx. USD $433 million). Helen Tanzil, Corporate Secretary at Ace Hardware Indonesia, said that the result is better than the retailer's own target (which was set at IDR 5.7 trillion for 2017). For 2018, Ace Hardware Indonesia eyes 10 percent growth for both sales and net profit.
In December 2017, same store sales growth (SSSG) grew 17.6 percent, the company's highest SSSG figure over the past four years. Regarding full-year 2017, SSSG reached 11.7 percent, supported by sales of lifestyle and home improvement products. After such strong growth in 2017, Ace Hardware Indonesia set a modest 5 percent growth target for SSSG in 2018.
Ace Hardware Indonesia set aside IDR 200 billion (approx. USD $15 million) for capital expenditures in 2018 (lower than the IDR 300 billion that was allotted to its capital expenditures budget in the preceding year). The funds, which will be fully used to add 10-15 new stores in 2018, stem from the company's internal cash reserves.
Last year's capital expenditures budget was also fully used for the opening of new stores. At the start of 2017 Ace Hardware targeted to open up to 15 new stores that year. However, the company actually managed to open 17 new stores in the urban centers of Indonesia in 2017. Currently Ace Hardware has 144 stores across Indonesia.
Although shares of Ace Hardware Indonesia fell 2.34 percent to IDR 1,250 a piece on Wednesday (17/01), its shares are still up 8.23 percent so far this year.
Stock Quote Ace Hardware Indonesia - ACES: