Jakarta, 31 March 2023 – PT Erajaya Swasembada, Tbk. (ticker code: ERAA. IJ), one of the largest handset distributor and retail companies in Indonesia has released its financial statements for its financial year 2022. The company managed to sustain positive growth, as evidenced by a 13.8% increase in net sales along with a profit attributable to the parent company of IDR 1 trillion.
The following are summaries of ERAA's financial results for the financial year 2022:
- Sales increased by 13.8% year on year, from IDR 43.5 trillion in FY 2021 to IDR 49.5 trillion in FY 2022
- Gross margin was 10.8% in fiscal year 2022
- Net profit attributable to parent company was IDR 1.0 trillion in FY 2022
Hasan Aula, Vice President Director of PT Erajaya Swasembada Tbk, said, "Erajaya closed 2022 with a positive achievement with sales of IDR 49.5 trillion, increased by 13.8% from the previous year with a net profit of IDR 1.0 trillion. The accomplishment was made possible by Erajaya's initiative to continue business expansion with the objective to develop our existing omnichannel network by adding 568 outlets in 2022. We also achieved several important milestones in 2022, in which Erajaya created business lines outside of the primary business in the handset sector, by establishing the business verticals Erajaya Active Lifestyle, Erajaya Food & Nourishment, and Erajaya Beauty & Wellness. With this strategy, Erajaya Group aims to improve the Company's value and provide a broader range of products and services to our customers.”
Hasan stated, "As of 31 December 2022, Erajaya has 1,682 outlets supported by 89 distribution points, and collaborations with over 66,000 resellers in Indonesia, Malaysia, and Singapore. This footprint expansion is also supported by the Erafone Cloud Retail Partner program initiative, which allows local partners to collaborate with Erajaya to open Erafone outlets in previously untapped markets. 54 Erafone Cloud Retail Partner outlets have been opened in different locations throughout Indonesia until the end of December 2022."
"The omnichannel concept that has been built is constantly improved, both by expanding capabilities and offerings through our e-commerce page, the eraspace.com and by collaborating with various marketplace platforms. This is outfitted with a CRM program, myeraspace, which enables us to better understand our customers in order to provide them with memorable offers, promotions, and shopping experiences. Myeraspace has more than 6.5 million members by the end of December 2022, representing a 48% increase over the previous year," Hasan added.
Erajaya Group currently has 4 main business lines, which are expected to make the company a leading lifestyle retail player with the widest omnichannel network. The 4 business verticals and several milestones for 2022 are as follows:
- Erajaya Digital
A vertical that focuses on the main business, namely smartphones along with computers and consumer electronics. In early 2022, Erajaya announced a Joint Venture Partnership with Mobile World Group to open a retail store that focuses on consumer electronics under the name Era Blue. By the end of 2022, the company already has 5 Era Blue stores.
- Erajaya Active Lifestyle
A vertical focused on IoT, accessories and lifestyle related products.
- In early 2022, Erajaya has entered into a Joint Venture Partnership with JD Sport Fashion Plc from United Kingdom to open a retail store under the name JD Sport which focuses on sports fashion apparel products. Until the end of December 2022, JD Sports Indonesia has 7 outlets in Jakarta and surrounding areas.
- This vertical also entrusted to open the well-known sports goods retailer ASICS, which has opened 4 locations until the end of 2022.
- Erajaya Food & Nourishment
Erajaya's vertical business line focuses on the food & beverages industry also grocery store business:
- Conducted a Joint Venture Partnership with GrandLucky Group to open a grocery store under the name Grand Lucky and currently has 5 stores until December 2022.
- Conducted a Joint Venture Partnership with SPC Group from Singapore to open Paris Baguette café-bakeries in Indonesia, and currently has 8 outlets in Jabodetabek.
- Erajaya Food & Nourishment also invested in the form of share ownership in Sushi Tei Group.
- Erajaya Beauty & Wellness
A vertical that focuses on healthcare, wellness, and beauty products. Here's an update for this vertical:
- Erajaya Beauty & Wellness has launched Wellings Pharmacy network in Indonesia, In collaboration with CARiNG Pharmacy Retail Management Sdn Bhd from Malaysia. Until the end of December 2022, it has 14 pharmacy stores in Indonesia.
- Furthermore, until the end of 2022, the well-known South Korean brand The Face Shop has 33 stores in different cities throughout Indonesia.
Hasan concluded in his official statement,” We are committed to achieving sustainable growth through strengthening all new business lines owned by the Erajaya Group. Simultaneously, we will continue to grow our handset business by branching out into new cities and strengthening our existing omnichannel concept. In 2023, we will continue to broaden our footprint by adding approximately 600 dedicated to our handset business. This is anticipated to improve the company's fundamentals and bring Erajaya Group closer to our vision."