The Inventory Build Unwound Right on Schedule - The Market Didn't Wait Around to Notice
This is PT Sumber Alfaria Trijaya Tbk's unaudited interim consolidated financial statements for the six months ended June 30, 2023, authorized for issue by the Board of Directors on July 27, 2023. The headline: net revenue rose 12.42% to Rp53,833,869 million, from Rp47,886,751 million, and net income attributable to owners rose 28.63% to Rp1,612,720 million, from Rp1,253,764 million (see Key Financial Metrics) - a wider profit-to-revenue gap than Q1 2023's more evenly matched 14.22%/14.80% pair, but this time the mechanism looks healthier: combined segment income grew a genuine 15.76% year-over-year (see Segments Compared), not the 4.91% Q1 posted while overhead absorbed the difference. Unallocated corporate overhead still fell 2.56%, so cost discipline hasn't disappeared, but it's no longer doing most of the work behind the headline number.
The cash-flow story flagged at Q1 2023 resolved almost exactly as that post's own seasonal read predicted. Net cash from operating activities for the six months swung to +Rp2,494,765 million, from +Rp1,400,941 million a year earlier - meaning the standalone second quarter alone (H1 total less Q1's already-published -Rp46,710 million) contributed roughly +Rp2,541,475 million, a reversal of Q1's negative reading almost five times over. The mechanism is the mirror image of Q1's: inventories, which had jumped 49.49% ahead of Ramadan and Lebaran, fell 24.57% from March's Rp13,645,521 million to Rp10,292,573 million at June 30 - still up 12.75% from December 2022, but the pre-holiday build genuinely unwound as Q1's own post said it should. Free cash flow followed the same arc: +Rp1,554,788 million for the half, up 225.44% from +Rp477,756 million a year earlier - a full recovery from Q1's -Rp485,382 million, this site's widest single-quarter FCF swing on record for the company, now offset by an even larger swing back the other way.
None of that showed up in the share price. Alfamart's stock closed the quarter at Rp2,580, down 10.42% from Rp2,880 at Q1 2023 (see Target Valuation Range) - the first quarter-over-quarter decline this site has recorded since FY2022's pullback from November's peak. A quarter that resolved its own cash-flow scare, grew segment income for real, and kept gaining market share (see Key Operational Metrics) still closed cheaper than it started - a reminder that the mood of a stock and the health of the business it represents aren't the same thing, in either direction.
The Prescription
Alfamart should keep leaning into what actually drove this quarter's profit: real segment growth (+15.76%) rather than overhead cuts carrying the number, a healthier mix than Q1 2023 or Q3 2022 managed, and market share that's now gained for two consecutive periods after four straight quarters of pullback through 2022. What management should stop doing remains exactly what the last several posts have flagged: letting the up-to-5-billion-share rights issue mandate go unaddressed, now roughly 14.7 months past its own regulatory deadline, in a sixth consecutive filing since the annual report that said nothing about it at all (see Beyond the Usual). A pre-Ramadan inventory build that breaks and then repairs cash flow within two quarters is a normal, explainable seasonal pattern management doesn't need to change anything about - the mandate's multi-year silence has no such seasonal excuse, and continuing to say nothing about it is now the more unusual choice with every filing that goes by.
Key Financial Metrics
H1 2023 vs. H1 2022 (P&L and cash flow), June 2023 vs. December 2022 (balance sheet) - consolidated, unaudited
FX: IDR 15,026 = USD 1 (Bank Indonesia's period-end exchange rate as of June 30, 2023, per the filing's own foreign-currency policy note). This filing's own comparative column states Rp15,731 = USD 1 for December 31, 2022 - matching the same figure Q1 2023 disclosed for that date, not the conflicting Rp15,174 the FY2022 annual report itself stated (see that post's Beyond the Usual for the original discrepancy); no new rate conflict appears in this filing.
| Metric | H1 2023 (IDR) | H1 2023 (USD) | H1 2022 (IDR) | YoY |
|---|---|---|---|---|
| Net Revenue | Rp53,833,869M | ~$3,582.4M | Rp47,886,751M | ✅ +12.42% |
| Gross Profit | Rp11,435,835M | ~$761.0M | Rp9,928,108M | ✅ +15.19% |
| Income from Operations ("Operating Income") | Rp2,109,092M | ~$140.4M | Rp1,672,647M | ✅ +26.09% |
| Income Before Final Tax and Corporate Income Tax | Rp2,046,144M | ~$136.2M | Rp1,597,001M | ✅ +28.12% |
| Income for the Period (total) | Rp1,647,728M | ~$109.7M | Rp1,279,679M | ✅ +28.77% |
| Net Income (attributable to owners) | Rp1,612,720M | ~$107.3M | Rp1,253,764M | ✅ +28.63% |
| EPS | Rp38.84 | ~$0.00258 | Rp30.19 | ✅ +28.65% |
| EBITDA» (Operating Income + D&A) | Rp3,878,904M | ~$258.1M | Rp3,274,971M | ✅ +18.44% |
| Balance sheet metric | Jun 2023 (IDR) | Jun 2023 (USD) | Dec 2022 (IDR) | Change |
|---|---|---|---|---|
| Total Assets | Rp33,009,780M | ~$2,196.7M | Rp30,746,266M | ✅ +7.36% |
| Total Liabilities | Rp20,803,358M | ~$1,384.4M | Rp19,275,574M | ⚠️ +7.93% |
| Total Equity (attributable to owners) | Rp11,790,818M | ~$784.7M | Rp11,221,527M | ✅ +5.07% |
| Total Cash (incl. time deposits) | Rp2,963,882M | ~$197.2M | Rp3,818,601M | ⚠️ -22.38% |
"Adjusted EBITDA»" remains a metric Alfamart doesn't report; the EBITDA line above is Income from Operations plus depreciation and amortization (Rp1,769,812M for H1 2023, per the segment note, versus Rp1,602,324M for H1 2022).
Free cash flow (net cash from operating activities minus capex - "acquisition of fixed assets" only, same basis as prior posts) rose to +Rp1,554,788M, up 225.44% from +Rp477,756M in H1 2022 - net cash from operating activities alone rose to +Rp2,494,765M from +Rp1,400,941M (see opening section above for the standalone-quarter breakdown). Cash receipts from customers grew 12.47% (Rp55,422,087M from Rp49,279,481M) while cash payments to suppliers grew slightly slower, 11.42% (Rp45,341,040M from Rp40,692,173M) - a narrower gap than Q1 2023's widening one, consistent with the inventory unwind. Capex on fixed assets rose just 1.82% (Rp939,977M from Rp923,185M), again lagging the store network's 9.28% growth (see Key Operational Metrics).
Debt-to-Equity Ratio (DER)» (interest-bearing debt - short and long-term bank loans and consumer financing payables, excluding the right-of-use lease liability, on the same basis as prior posts; no bonds remain outstanding): roughly 0.11x at June 2023, down from 0.14x at December 2022 (this filing's own comparative). Total interest-bearing debt stood at approximately Rp1,277,989 million (short-term bank loans of Rp1,082,000M, the current portion of long-term bank loans of Rp31,497M, and non-current bank loans of Rp164,492M), down 18.36% from this filing's own December 2022 balance of approximately Rp1,565,476 million. ✅ Net gearing improved to roughly -0.14x (net cash) at June 2023, from -0.10x at March 2023 - reversing March's weaker reading, though still less net-cash-heavy than December 2022's -0.20x, the strongest net-cash position this site has recorded for the company.
Key Operational Metrics
- Store network: 21,383 consolidated stores (Alfamart, Alfamidi, Lawson, and Dan+Dan, per the company's own presentation) as of June 2023, up 9.28% from 19,567 a year earlier at H1 2022 - the company's own presentation reports 916 net new stores added across these banners in the half.
- Permanent employees: 84,223 as of June 2023, up 3.43% from 81,432 at December 2022 per this filing's own comparative column - no discrepancy against the FY2022 annual report's own figure for that same date, unlike the small gap Q1 2023 flagged in headcount disclosures between filings.
- Market share: Alfamart's share of total Indonesia grocery rose to 13.2%, from 12.2% a year earlier (YTD June 2023 vs. YTD June 2022, per the company's own presentation) - a second consecutive period of gains after Q1 2023's reversal of four straight quarters of pullback. Share of Modern Trade rose to 27.2% (from 25.6%), and share of Modern Trade Minimarket rose to 34.2% (from 32.2%) - all three readings extending the same-direction pattern Q1 2023 first showed after a prior run of splits between total-share losses and addressable-market-share gains.
Segment Performance
Alfamart reports the same three geographic segments as every prior post - Jabodetabek (greater Jakarta), Java excluding Jabodetabek, and Outside Java. Figures below use each segment's external revenue, for the six months ended June 30.
| Segment | Revenue (H1 2023) | Revenue (H1 2022) | YoY | Segment Income (H1 2023) | Segment Income (H1 2022) | YoY | Margin (2023 vs 2022) |
|---|---|---|---|---|---|---|---|
| Jabodetabek | Rp15,316,110M | Rp13,501,714M | ✅ +13.44% | Rp543,280M | Rp412,213M | ✅ +31.80% | ✅ 3.55% vs 3.05% |
| Java (excl. Jabodetabek) | Rp20,554,885M | Rp18,534,013M | ✅ +10.91% | Rp1,388,515M | Rp1,230,366M | ✅ +12.85% | ✅ 6.76% vs 6.64% |
| Outside Java | Rp17,962,874M | Rp15,851,024M | ✅ +13.32% | Rp1,095,474M | Rp972,410M | ✅ +12.66% | ⚠️ 6.10% vs 6.13% |
Two of three segments gained margin this half, the same pair - Jabodetabek and Java excluding Jabodetabek - that Q1 2023 reported losing margin standalone alongside Outside Java. Since the H1 cumulative figures now show Java excluding Jabodetabek gaining margin (+0.117 points) despite Q1 standalone showing it losing ground, the reversal happened entirely within the second quarter alone - a cleaner recovery than the segment-swap pattern this site tracked through most of 2022. Outside Java is now the lone segment losing margin, a mild 0.034-point slip, after being one of two losers in Q1 2023 standalone.
Segments Compared
Combined segment income grew 15.76% year-over-year (Rp2,614,989M to Rp3,027,269M) - a real acceleration from Q1 2023 standalone's anemic 4.91%, and the strongest half-year segment growth this site has recorded for the company outside H1 2021's pandemic-recovery base effect. Unallocated corporate overhead still fell 2.56% (Rp942,342M to Rp918,177M) - overhead's share of combined segment income fell to 30.33%, from 36.04% a year earlier, continuing the multi-year decline this site has tracked since FY2019. Net income to owners still grew faster than combined segment income (28.63% vs 15.76%), so overhead discipline and non-operating items are still contributing to the gap, but at roughly half the multiple of Q1 2023's 14.80% vs 4.91% ratio - a healthier balance between real segment growth and cost management than recent quarters have shown.
Beyond the Usual
The rights issue mandate stays unaddressed for a sixth straight filing since the annual report went completely silent
Shareholders approved the up-to-5-billion-share Capital Increase with Pre-emptive Rights (HMETD) at the May 6, 2021 Extraordinary General Meeting - a mandate this site has now tracked across ten consecutive filings, most recently Q1 2023 (silent, like every filing since the FY2022 annual report stopped even acknowledging it). Under Indonesia's OJK Regulation No. 32/POJK.04/2015, a public company has 12 months from shareholder approval to obtain the regulator's declaration of effectiveness for a rights issue - meaning this mandate's regulatory window closed on May 6, 2022. This filing was authorized for issue on July 27, 2023 - roughly 14.7 months (447 days) past that deadline - and, like every filing since the FY2021 annual report, contains no reference anywhere to the rights issue having lapsed, been extended, been formally cancelled, or been replaced by a fresh shareholder approval. The Company's own public-offering history note again stops at the June 2015 non-preemptive rights issue, still never mentioning the May 2021 approval at all. The issued share count remains unchanged at 41,524,501,700. Notably, this filing does disclose a different rights issue as a subsequent event - a pre-emptive rights issue of up to 4,611,764,800 shares approved for listing on July 4, 2023 - but that transaction belongs to PT Midi Utama Indonesia Tbk ("MIDI," trading as Alfamidi), a separately-listed subsidiary roughly 89.4%-owned by the Company, not the Company's own May 2021 mandate. The two are unrelated capital actions at different entities in the same corporate group, and the filing's silence on its own parent-level mandate continues even in the same document that discloses a subsidiary successfully completing a similar transaction.
The Bank Aladin stake's unrealized loss narrowed from its Q1 low, but is still worse than year-end
The Rp500,000 million stake in PT Bank Aladin Syariah Tbk, first flagged at H1 2022 and tracked through Q1 2023's widened -29.41% reading, shows an accumulated unrealized fair-value loss of Rp139,705 million at June 30, 2023 - narrower than March's Rp147,058 million but still deeper than December 2022's Rp83,823 million, bringing the carrying value to Rp360,295 million (a 27.94% paper loss on the original investment, an improvement from Q1's 29.41% loss but still worse than FY2022's 16.76%). As at Q1 2023, the note also discloses a near-filing-date value - Rp380,883 million as of "the date near completion" of these statements (close to the July 27, 2023 authorization date) - again higher than the period-end figure, the second consecutive quarter this site has recorded the stake's near-filing value moving in the opposite direction from its period-end reading.
Franchise stores are growing faster than company-owned ones, even as franchise revenue's share of the top line slipped
Franchise-operated stores grew to 4,963 as of H1 2023, up 10.02% from 4,511 a year earlier - outpacing company-owned stores' 9.06% growth (16,420 from 15,056), per the company's own presentation. Yet net revenue from franchises came to Rp9,772,038 million, or 18.15% of total net revenue for the half, down from 18.51% a year earlier (Rp8,863,130 million) even as the absolute figure grew. The franchise network is expanding faster than the company-owned one in store count, but each franchise store is contributing a slightly smaller slice of consolidated revenue than a year ago - a mix effect worth watching rather than a concerning one on its own, since franchise revenue (contribution fees calculated as a percentage of franchisee net revenue, per Note 25) is structurally lower-margin-per-store than company-owned sales revenue.
Related-party purchases fell further as a share of total purchases, extending the reversal Q1 first flagged
Net purchases from PT Atri Distribusindo, PT Yamazaki Indonesia, and PT Alfindo LF Makmur totaled Rp390,065 million for the half, 0.90% of total net purchases - down from 1.03% a year earlier (Rp407,912 million), extending the decline Q1 2023 first flagged (0.73% vs 1.00% on a standalone-quarter basis) after four consecutive prior periods of growth in this share. Two consecutive periods of decline now argues more strongly for a genuine reversal in this metric than Q1's single data point could.
A related-party building lease liability grew more than sixfold, though it remains a small share of total liabilities
The Company's lease liability to PT Perkasa Internusa Mandiri ("PIM"), an entity under common control that the Company rents building space, equipment, and services from, rose to Rp110,652 million (0.34% of total consolidated liabilities) at June 30, 2023, from Rp17,329 million (0.09%) at December 31, 2022 - more than a sixfold increase in absolute terms, though still a small fraction of the balance sheet. The filing doesn't explain what drove the increase (a new lease, a lease modification, or a change in discount-rate assumptions could each produce this), but the arrangement's disclosed nature and terms (rent, equipment, repair and maintenance services) are unchanged from prior filings.
Coverage Table
| Metric | H1 2023 | H1 2022 | YoY | Why it matters |
|---|---|---|---|---|
| Net Revenue | Rp53,833,869M | Rp47,886,751M | ✅ +12.4% | Slower than H1 2022's 13.92% pace, but still double-digit |
| Net Income (to owners) | Rp1,612,720M | Rp1,253,764M | ✅ +28.6% | Growing faster than segments (+15.8%), though the gap is narrower than Q1's |
| Combined segment income | Rp3,027,269M | Rp2,614,989M | ✅ +15.8% | Real operating growth, not just overhead cuts, unlike Q1 2023 |
| Net cash from operating activities | +Rp2,494,765M | +Rp1,400,941M | ✅ swung positive | Q1's -Rp46,710M fully reversed as the pre-Ramadan inventory build unwound |
| Free cash flow | +Rp1,554,788M | +Rp477,756M | ✅ swung positive | Recovered from Q1's -Rp485,382M, the widest FCF swing this site has recorded |
| Market share (total Indonesia) | 13.2% | 12.2% | ✅ improved | Second straight period of gains after four quarters of pullback through 2022 |
| Rights issue disclosure | Zero mentions | Zero mentions | 🔴 unchanged | Sixth consecutive silent filing, now ~14.7 months past deadline |
Target Valuation Range
Enterprise value ~Rp105.45 trillion (~$7.02B), implying 13.80x EV/EBITDA and a trailing P/E of ~33.33x - every multiple this site tracks compressed this quarter as the share price fell 10.42% even while free cash flow, segment growth, and market share all improved. A rare disconnect worth watching for whether the market corrects toward the stronger fundamentals or the fundamentals eventually catch down to the price.
Alfamart's shares closed at Rp2,580 on June 30, 2023 (June 27's last trading session) - down 10.42% from Rp2,880 at March 2023, and up 26.47% from Rp2,040 a year earlier at H1 2022. No stock split has occurred since 2013, so no price adjustment is needed.
| Market cap → enterprise value | Q2 2023 |
|---|---|
| Share price (period-end) | Rp2,580 |
| Shares outstanding | 41,524,501,700 |
| Market capitalization | Rp107.13 trillion (~$7.13B) |
| Plus: interest-bearing debt | Rp1.28 trillion |
| Less: cash and equivalents | Rp2.96 trillion |
| Enterprise value | Rp105.45 trillion (~$7.02B) |
| Peer-multiple sanity check | Q1 2023 | Q2 2023 | Change |
|---|---|---|---|
| Trailing P/E | ~40.5x | ~33.33x | ✅ down sharply |
| EV/EBITDA | ~16.35x | ~13.80x | ✅ down |
| P/B | ~10.12x | ~9.09x | ✅ down |
Trailing P/E (using trailing-twelve-month net income attributable to owners of approximately Rp3,214,240 million: FY2022's Rp2,855,284 million, less the already-published H1 2022 figure, plus this half's Rp1,612,720 million) compressed sharply as the share price's 10.42% quarterly decline outpaced TTM earnings growth in the opposite direction. EV/EBITDA (against trailing-twelve-month EBITDA of approximately Rp7,639,760 million: FY2022's Rp7,035,827 million, less H1 2022's Rp3,274,971 million, plus this half's Rp3,878,904 million) fell the same way. P/B (book value of approximately Rp11,790,818 million equity attributable to owners ÷ 41.52 billion shares) fell as the price decline outpaced this quarter's equity growth.
No listed domestic peer still exists for a direct minimarket-format comparison - Indomaret remains privately held under the Salim Group. A full DCF still isn't included here: the rights issue mandate's continued silence (see Beyond the Usual) leaves an unresolved capital-structure question a forward model would need to take a view on either way, and this quarter's valuation compression against improving fundamentals argues for waiting to see which one moves before committing to a range. The share price moved within a Rp1,090-Rp3,090 range across the trailing two years to this quarter-end (based on month-end closes) - a 183.49% peak-to-trough swing, narrower than Q1 2023's trailing-two-year window as the low readings from mid-2021 continue rolling out of the two-year lookback.
PT Sumber Alfaria Trijaya Tbk's unaudited interim consolidated financial statements as of June 30, 2023 and for the six months then ended; the Company's corresponding investor presentation as of June 2023.