Ace Indonesia posts small sales growth for January to September

Ace Indonesia has finally broken free from the rut it had been in over the last two and a half years, when Covid-19 continuously eroded earnings. The company reported net sales of 4.895 trillion Indonesian Rupiah (IDR, EUR 316.37 mio) for January to September 2022, a 4.28 per cent uptick from the same period last year made significant by its reversal of the downward earnings trajectory during the pandemic era.

Home improvement, the company’s biggest category, contributed IDR 2.618 trillion, a 6.76 per cent rise that signals a recovery for the segment. Sales of lifestyle products were largely unchanged, making up IDR 1.975 trillion, while earnings from toys rose 9.19 per cent to IDR 189.682 bn.

This is the first time since 2020 that Ace Indonesia posted a rise in net sales. When the pandemic hit Southeast Asia, the company, which relies on store footfall, saw sales dwindling every quarter. However, analyst Angus Mackintosh, who publishes on Smartkarma, predicted in August that the company was ready for a rebound, supported by plans to open 15 new outlets in 2022 as well as by a 10.8 per cent rise in same store sales that month.

Ace Indonesia does not give a quarterly breakdown in its financial report, but calculations based on company data show that the company recorded sales of IDR 1.588 bn in the third quarter of 2022, a 22.24 per cent jump from the same quarter last year.

Part of the Kawan Lama Group, Ace Indonesia currently operates 228 stores in 53 Indonesian cities. Under its license agreement with Ace Hardware, the company is required to open two outlets a year. The agreement expires in December 2024.