- First Half (6 months) of 2015 Revenues recorded at Rp 910.3 billion, – 9.6% vs that for same period of 2014.
- First Half 2015 Gross Profit at Rp174.6 billion, Gross profit margin relatively stable at 19.2%.
- Same Store Revenue Growth (SSRG) at – 4.85% over the same period 2014.
- Expansion realized: 4 new stores, currently Total 71,247 sqm; Total 70 stores (54 EC Stores; 16 EC Outlet Stores).
- Store Refurbishment : 6 Stores.
Indonesia’s largest modern retail chain for electronic appliances, PT Electronic City Indonesia Tbk (ECII), announced its financial results for first 6 months of 2015.
ECII recorded revenue of Rp910.3 billions for first 6 months of 2015, representing a decline of 9.6 % from Rp1,006.8 billion over the same period last year as reflected by weakening consumer electronic demand due to general macroeconomic conditions in the country as a result of Rupiah’s depreciation which led to overall reduction in consumers’ discretionary spending. Even the anticipated boost in the retail industry associated with Ramadhan (moslems’ fasting) season did not materialize in 2nd Quarter of 2015. (Note : sales peak due to Lebaran/ Eid Mubarak festive occurred in July 2015).
As consumer electronics industry declined , ECII Same Store Revenue posted decline either by – 4.85% in the first 6 months 2015, showed a slowdown, as compared to the same period in 2014. Gross profit dropped by – 11.3% to Rp174.6 bn, however Gross Profit margin was at 19.2%, relatively stable with last year. Net profit for the first 6 months 2015 stands at Rp27.0 billion which represents a decline of – 55.2% compared to the Rp60.4 billion for the same period in 2014, due to top line weakening sales and the stores opened in 2013 and 2014 have not matured yet.
However, the company leverage this macroeconomic situation as an opportunity to refurbish 6 stores, stabilize SAP migration and implement Supply Chain Management to improve inventory and cost control as well as better value added services to the customers, other IT systems and human resources development. A key milestone for is expected going forward as the company also focuses on promoting cost efficiencies, development of e-commerce as to captivate the potentiality of its growing market, as well as improvement in Distribution Centre (DC) to reduce inventory level in each stores and increase performance in delivery time.
With hopes arise from the realization of infrastructure budget by Indonesian government, the national economic will improve and retail industry regain its confidence. The company will review macroeconomic condition in relation to opening new stores in 2015. As of 30th June 2015, Electronic City has opened additional 4 new stores, giving a total of 70 stores. Its store network has covered 4 main Islands (Java-Bali, Sumatra, Kalimantan and Sulawesi), 14 out of 33 provinces and 23 cities in Indonesia.
About Electronic City
PT Electronic City Indonesia, Tbk. (Stock code: ECII), is a pioneer of modern electronic retail in Indonesia that was founded in 2001. Electronic City provides a variety of products are available in four main categories include Audio-Videos, Home appliance, Mobile devices & gadgets, as well as IT and office equipment. Electronic City also pioneered to provide value added services to consumers in the form of interest-free installment, 14-day replacement warranty damaged goods (except Batam area), free of fire, storm, lightning, and flood insurance, free delivery at certain radius, free installation, trade-in options, and also Electronic City’s premium services ‘The Pioneer Starts the First’ as the new value added services in the form of EC-Express, EC Service Contract and EC 24-hour Repair. After-sales service is guaranteed, as well as a variety of payment options and consumer financing (terms & conditions apply).
As a leader, Electronic City has received many prestigious awards within the retail industry, one of which of the newest is Top Brand Award as the brand most recommended by customers awarded in July 2015. Other awards received include WOW Brand Award, Superbrand Award, Corporate Image Award and Social Media Award.
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