Jabodetabek's Best Stretch Just Became Its Worst Quarter
This is PT Sumber Alfaria Trijaya Tbk's audited consolidated financial statements for the year ended December 31, 2023, authorized for issue by the Board of Directors on March 23, 2024, with an unqualified opinion from KAP Purwantono, Sungkoro & Surja (Ernst & Young's Indonesian member firm, unchanged from FY2022). The headline: net revenue rose 10.34% to Rp106,944,683 million, from Rp96,924,686 million, and net income attributable to owners rose 19.20% to Rp3,403,657 million, from Rp2,855,284 million (see Key Financial Metrics).
The last post on this company flagged that standalone Q3 combined segment income had actually fallen 5.00% year-over-year, with headline profit growth propped up almost entirely by a 33.60% cut to unallocated corporate overhead. Subtracting that already-published nine-month total from this filing's full-year figures (both the Company's own presentation and this site's calculation from the segment note agree) shows the standalone fourth quarter didn't just recover - it reversed the entire geographic pattern. Combined segment income rose 16.05% year-over-year in the standalone quarter (Rp1,606,188 million from Rp1,384,031 million, see Segments Compared), but the region carrying it changed completely: Jabodetabek's standalone Q4 segment income fell 39.49% (Rp153,135 million from Rp253,038 million, margin down to 2.02% from 3.57%), while Java excluding Jabodetabek rose 30.94% (margin up to 8.03% from 6.63%) and Outside Java rose 25.58% (margin up to 6.97% from 6.13%) - see Segment Performance. Jabodetabek was the only segment gaining margin on a cumulative nine-month basis as of September; by year-end, it's the only one that lost ground in the standalone quarter that followed.
Standalone Q4 net income to owners rose a more modest 9.92% (Rp1,213,422 million from Rp1,103,941 million) - well behind the segment-income growth, for a reason worth flagging: Q4 2022's unallocated overhead line included what amounts to a net credit of roughly Rp50,679 million (the full-year 2022 overhead total is actually lower than the already-reported nine-month 2022 figure, meaning the standalone quarter reversed cost rather than adding it), while Q4 2023's standalone overhead was a normal Rp57,952 million expense - a swing of roughly Rp108.6 billion that flatters the Q4 2022 comparison base (see Beyond the Usual).
The Prescription
Alfamart's balance sheet is now about as clean as it gets: interest-bearing debt is effectively retired (see Key Financial Metrics), and management should keep using that capacity for what's clearly working - Java and Outside Java both just posted their strongest standalone-quarter segment margins in this site's multi-year coverage, and store growth in FY2023 was led by the fastest franchise expansion on record (+495 net new franchise stores, per the company's own presentation) precisely in the outer-island geography that's now carrying profitability. What it should stop doing is treating Jabodetabek's standalone Q4 collapse as a non-event: a 39.49% segment-income decline in the country's largest, most mature market - reversing the one region that had been improving all year - gets zero acknowledgment anywhere in this filing, the same silence this site has flagged around the unaddressed rights issue mandate for twelve consecutive quarters now. A company confident enough to disclose a subsidiary's stock split, a subsidiary's rights issue, and two post-period-end Philippine capital injections in the same document has the disclosure muscle to say what happened in its home market too.
Key Financial Metrics
FY2023 vs. FY2022 (P&L and cash flow), December 2023 vs. December 2022 (balance sheet) - consolidated, audited
FX: IDR 15,416 = USD 1 (Bank Indonesia's period-end exchange rate as of December 31, 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 every prior filing since Q1 2023 - no new rate conflict this quarter.
| Metric | FY2023 (IDR) | FY2023 (USD) | FY2022 (IDR) | YoY |
|---|---|---|---|---|
| Net Revenue | Rp106,944,683M | ~$6,937.3M | Rp96,924,686M | ✅ +10.34% |
| Gross Profit | Rp23,066,117M | ~$1,496.2M | Rp20,022,444M | ✅ +15.20% |
| Income from Operations ("Operating Income") | Rp4,429,298M | ~$287.3M | Rp3,770,188M | ✅ +17.48% |
| Income Before Final Tax and Corporate Income Tax | Rp4,332,521M | ~$281.0M | Rp3,617,223M | ✅ +19.77% |
| Income for the Year (total) | Rp3,484,025M | ~$226.0M | Rp2,907,478M | ✅ +19.83% |
| Net Income (attributable to owners) | Rp3,403,657M | ~$220.8M | Rp2,855,284M | ✅ +19.20% |
| EPS | Rp81.97 | ~$0.0053 | Rp68.76 | ✅ +19.21% |
| EBITDA» (Operating Income + D&A) | Rp8,086,174M | ~$524.5M | Rp7,035,827M | ✅ +14.93% |
| Balance sheet metric | Dec 2023 (IDR) | Dec 2023 (USD) | Dec 2022 (IDR) | Change |
|---|---|---|---|---|
| Total Assets | Rp34,246,183M | ~$2,221.5M | Rp30,746,266M | ✅ +11.38% |
| Total Liabilities | Rp18,540,983M | ~$1,202.7M | Rp19,275,574M | ✅ -3.81% |
| Total Equity (attributable to owners) | Rp14,473,429M | ~$938.9M | Rp11,221,527M | ✅ +28.98% |
| Total Cash (incl. time deposits) | Rp4,074,530M | ~$264.3M | Rp3,818,601M | ✅ +6.70% |
"Adjusted EBITDA»" remains a metric Alfamart doesn't report; the EBITDA line above is Income from Operations plus depreciation and amortization (Rp3,656,876M for FY2023, per the segment note, versus Rp3,265,639M for FY2022).
Free cash flow (net cash from operating activities minus capex - "acquisition of fixed assets" only, same basis as prior posts): +Rp4,565,140M, down 9.85% from +Rp5,063,819M in FY2022 ⚠️ - the first full-year FCF decline this site has recorded for the company since FY2016. Net cash from operating activities fell 3.48% to Rp6,817,021M (from Rp7,062,488M) even as cash receipts from customers rose 10.19% (Rp106,496,110M from Rp96,648,254M) - the gap opened because cash payments for operating expenses jumped 29.08% (Rp5,232,822M from Rp4,053,746M), well ahead of the 10.24% growth in payments to suppliers and the 16.71% growth in salary/wage payments. Capex on fixed assets grew 12.67% (Rp2,251,881M from Rp1,998,669M), roughly in line with the 9.01% store-network 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 0.0043x at December 2023, down from 0.14x at December 2022 - the lowest DER this site has recorded for the company, even lower than 9M 2023's already-record 0.01x. Total interest-bearing debt fell to approximately Rp62,919 million (short-term bank loans of Rp62,792M plus Rp127M of consumer financing payables) - both current and non-current bank loans are essentially retired, down 95.98% from Rp1,565,536 million at December 2022. Net gearing deepened further to roughly -0.28x (net cash) at December 2023, from -0.20x at December 2022 - a deeper net-cash position than 9M 2023's -0.25x.
Key Operational Metrics
- Store network: 22,310 consolidated stores (Alfamart, Alfamidi, Lawson, and Dan+Dan, per the company's own presentation) as of December 2023, up 9.01% from 20,467 a year earlier at December 2022 - a net addition of 1,843 stores for the year, of which 482 came in the standalone fourth quarter (1,843 less the already-published 1,361 added through 9M 2023). Franchise stores grew faster than company-owned ones for the full year (10.50% to 5,207, from 4,712, versus company-owned's 8.56% to 17,103, from 15,755) - a reversal of the 9M pattern, where company-owned growth (10.89%) had outpaced franchise growth (9.99%). The company's own presentation states FY2023 saw the highest number of franchise stores ever opened in a single year (+495 net new franchise stores).
- Permanent employees: 87,142 as of December 2023, up 7.01% from 81,432 at December 2022 (both figures disclosed as unaudited in this filing's related-party/key-management note).
- Market share: Alfamart's share of total Indonesia grocery rose to 13.1%, from 12.2% a year earlier (full-year 2023 vs full-year 2022, per the company's own presentation, using Nielsen data covering 68 grocery categories) - a smaller full-year gain than 9M 2023's 13.2% reading, suggesting the pace of share gains eased slightly in the fourth quarter even though it didn't reverse. Share of Modern Trade rose to roughly 27.4% (from 25.6%), and share of Modern Trade Minimarket rose to roughly 34.1% (from 32.2%).
- Alfagift (loyalty/e-commerce app): contributed 5.1% of total revenue for FY2023, up roughly 40% year-over-year, with average basket size up 19.8% - outpacing Indonesia's overall online spending growth rate of roughly 14% (Nielsen, per the company's own presentation). This is the first time this site has recorded a specific revenue-contribution figure disclosed for the app.
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 and segment income for the year ended December 31, alongside the standalone fourth quarter derived by subtracting the already-published nine-month figures from this filing's full-year totals.
| Segment | External Revenue (FY2023) | External Revenue (FY2022) | YoY | Segment Income (FY2023) | Segment Income (FY2022) | YoY | Margin (2023 vs 2022) |
|---|---|---|---|---|---|---|---|
| Jabodetabek | Rp30,426,966M | Rp27,613,509M | ✅ +10.19% | Rp945,648M | Rp880,380M | ✅ +7.42% | ⚠️ 3.11% vs 3.19% |
| Java (excl. Jabodetabek) | Rp40,126,726M | Rp36,823,894M | ✅ +8.97% | Rp2,644,052M | Rp2,374,708M | ✅ +11.34% | ✅ 6.59% vs 6.45% |
| Outside Java | Rp36,392,931M | Rp32,490,344M | ✅ +12.01% | Rp2,146,125M | Rp1,904,359M | ✅ +12.69% | ✅ 5.90% vs 5.86% |
| Segment - standalone Q4 (derived) | Revenue (Q4 2023) | Revenue (Q4 2022) | YoY | Segment Income (Q4 2023) | Segment Income (Q4 2022) | YoY | Margin (2023 vs 2022) |
|---|---|---|---|---|---|---|---|
| Jabodetabek | Rp7,590,837M | Rp7,087,439M | ✅ +7.10% | Rp153,135M | Rp253,038M | 🔴 -39.49% | 🔴 2.02% vs 3.57% |
| Java (excl. Jabodetabek) | Rp9,977,877M | Rp9,230,956M | ✅ +8.09% | Rp801,186M | Rp611,901M | ✅ +30.94% | ✅ 8.03% vs 6.63% |
| Outside Java | Rp9,353,241M | Rp8,470,207M | ✅ +10.43% | Rp651,867M | Rp519,092M | ✅ +25.58% | ✅ 6.97% vs 6.13% |
On a cumulative full-year basis, all three segments still grew revenue and income - the cumulative view alone would suggest a broadly healthy year across the whole footprint. It's only the standalone fourth quarter, isolated the same way 9M 2023 isolated Q3, that shows Jabodetabek's cumulative full-year margin gain (well, actually a slight loss, 3.11% from 3.19% - see the table above) was carried entirely by growth earlier in the year, and that the quarter just gone was materially worse there than a year earlier. Java excluding Jabodetabek and Outside Java, the two segments that lost margin in the standalone Q3 (see the 9M post), both swung to their best standalone-quarter margins in this site's coverage.
Segments Compared
Combined segment income grew 11.17% year-over-year on a full-year basis (Rp5,159,447M to Rp5,735,825M) - faster than 9M 2023's cumulative 9.38%, confirming the standalone Q4 recovery flagged above. Unallocated corporate overhead fell 5.96% for the full year (Rp1,389,259M to Rp1,306,527M) - overhead's share of combined segment income eased to 22.78%, from 26.93% a year earlier, continuing the multi-year decline this site has tracked since FY2019, though the full-year figure obscures how the standalone quarters actually behaved: 9M 2023's cumulative overhead cut was a steep 13.29%, meaning the standalone Q4 2023 overhead line was a real Rp57,952 million expense that pushed the full-year cut back down to 5.96% - a genuinely different pattern from Q4 2022, where the standalone quarter recorded a net overhead credit of roughly Rp50,679 million (see Beyond the Usual for why this affects the YoY comparison). Net income to owners still grew faster than combined segment income for the full year (19.20% vs 11.17%), but by a narrower margin than at 9M 2023 (25.06% vs 9.38%) - overhead and non-operating items did proportionally less of the lifting for the full year than the nine-month figures alone implied.
Beyond the Usual
The rights issue mandate stays unaddressed for a twelfth consecutive filing
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 twelve consecutive filings, most recently 9M 2023 (silent, like every filing since the FY2022 annual report stopped even acknowledging it). This filing was authorized for issue on March 23, 2024 - roughly 22.5 months (approximately 686 days) past the mandate's own May 6, 2022 regulatory deadline under OJK Regulation No. 32/POJK.04/2015 - 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. The issued share count remains unchanged at 41,524,501,700 - the same figure disclosed at every quarter since the approval was granted.
Q4 2022's overhead line included a credit that Q4 2023 didn't repeat, flattering last year's comparison
The segment note's own reconciliation shows unallocated overhead for full-year 2022 (Rp1,389,259 million) was actually lower than the nine-month 2022 figure this site already recorded (Rp1,439,938 million, per the 9M 2023 post) - meaning the standalone fourth quarter of 2022 carried a net overhead credit of roughly Rp50,679 million, not a cost. Standalone Q4 2023's overhead, by contrast, was a normal Rp57,952 million expense. That roughly Rp108.6 billion swing means the 9.92% standalone net-income growth reported for Q4 2023 (see the opening section) is being measured against an unusually flattered prior-year base - the underlying operating recovery (segment income up 16.05% standalone) is real, but the bottom-line comparison understates just how much better Q4 2023 actually performed operationally.
The Bank Aladin stake's paper loss narrowed at period-end, then widened again by the audit report date
The Rp500,000 million stake in PT Bank Aladin Syariah Tbk, first flagged at H1 2022 and tracked through 9M 2023's 36.76% reading, shows an accumulated unrealized fair-value loss of Rp135,294 million at December 31, 2023 - a 27.06% paper loss, an improvement from September's 36.76% (bringing the carrying value up to Rp364,706 million). But the note goes on to disclose that "as of the date near completion of these consolidated financial statements" (close to the March 2024 authorization date), Bank Aladin's share price implied a carrying value of just Rp292,647 million - a 41.47% loss from cost, worse than both the December 2023 period-end figure and every prior quarter's near-filing-date reading this site has recorded. The stake's mark keeps recovering at period-end and then deteriorating again by the time the audit report is actually signed, a pattern now visible across three consecutive filings.
The related-party building lease to PIM ended the year at over five times December 2022's level
Alfamart's lease liability to PT Perkasa Internusa Mandiri ("PIM"), an entity under common control that the Company rents building space, equipment, and services from, stood at Rp98,943 million (0.53% of total consolidated liabilities) at December 31, 2023 - down from 9M 2023's Rp106,445 million, but still 5.71 times December 2022's Rp17,329 million. The filing doesn't explain what drove the original increase earlier in the year or the modest pullback since.
Long-term store and warehouse leases now run through 2034, with almost 240 months of committed payments disclosed
The significant-agreements note discloses that Alfamart has signed multiple long-term rental agreements - for minimarket locations and warehouses, with both third parties and related parties - running for terms of up to 240 months (20 years), maturing at various dates between 2024 and 2034. Depreciation charged against right-of-use assets under these and other lease arrangements rose to Rp2,141,182 million for FY2023, from Rp1,920,706 million in FY2022 - an 11.48% increase, roughly in line with the pace of new right-of-use asset additions (Rp2,001,532 million spent acquiring right-of-use assets in FY2023, per the cash flow statement, versus Rp1,860,713 million in FY2022). None of this is disclosed as an on-balance-sheet debt figure beyond the lease liability already carried at Rp1,798,155 million combined current and non-current - the 240-month commitment horizon itself only appears in this qualitative footnote.
Franchise income kept growing faster than the store count that generates it
Franchise cooperation agreements - five-year terms, paid up front plus a progressive contribution fee on each franchisee's monthly net revenue - generated Rp459,945 million of franchise income for FY2023, up 8.37% from Rp424,424 million in FY2022, while franchise store count itself grew 10.50% (see Key Operational Metrics). Contract liabilities associated with franchise fees paid in advance stood at Rp87,924 million at year-end, up 2.04% from Rp86,168 million - a much slower pace than either franchise income or franchise store growth, suggesting the mix of new versus renewing franchise agreements shifted slightly during the year.
Two post-year-end capital injections push further into the Philippines, without changing any ownership stakes
As subsequent events, the Company paid an additional US$6,307,945 into ARA (a wholly owned subsidiary) on March 13, 2024, keeping its ownership at 100.00%, and ARA in turn paid a further US$6,266,786 into Alfamart Trading Philippines Inc. (through Alfamart Retail Asia Pte., Ltd.) on March 19, 2024, without changing the Company's 35.00% stake in that vehicle. Separately, subsidiary LWS (the Lawson-branded convenience store business) issued 1,121,221,656 new shares on January 8, 2024, taken up proportionally by MIDI and other existing shareholders, leaving MIDI's ownership in LWS unchanged at 70.00%. None of the three transactions altered any consolidation percentage - they read as routine capital top-ups for expansion already under way, rather than a change in strategy.
Coverage Table
| Metric | FY2023 | FY2022 | YoY | Why it matters |
|---|---|---|---|---|
| Net Revenue | Rp106,944,683M | Rp96,924,686M | ✅ +10.3% | Consistent with the growth pace this site has tracked all year |
| Net Income (to owners) | Rp3,403,657M | Rp2,855,284M | ✅ +19.2% | Still ahead of segment income growth (+11.2%), but a narrower gap than 9M's |
| Combined segment income (standalone Q4) | Rp1,606,188M | Rp1,384,031M | ✅ +16.1% | Reverses Q3's standalone 5.0% decline |
| Jabodetabek segment income (standalone Q4) | Rp153,135M | Rp253,038M | 🔴 -39.5% | The region that gained the most margin all year fell hardest this quarter |
| Free cash flow (full year) | Rp4,565,140M | Rp5,063,819M | ⚠️ -9.9% | First full-year FCF decline this site has tracked since FY2016 |
| Interest-bearing bank debt | Rp62,919M | Rp1,565,536M | ✅ -96.0% | Now essentially fully retired; DER ~0.004x, lowest this site has recorded |
| Rights issue disclosure | Zero mentions | Zero mentions | 🔴 unchanged | Twelfth consecutive silent filing, now ~22.5 months past deadline |
Target Valuation Range
Enterprise value ~Rp117.66 trillion (~$7.63B), implying 14.55x EV/EBITDA and a trailing P/E of ~35.75x - fairly valued. The stock ended the year essentially flat against September's close, while trailing earnings grew faster than the price, pulling every multiple this site tracks down from 9M 2023's levels; the near-zero debt is a genuine structural strength, but the standalone Q4 segment reversal (see above) is a reminder that "fair" still depends on which region keeps carrying the business next.
Alfamart's shares closed at Rp2,930 on December 29, 2023 (the last trading session of the year) - down 1.01% from Rp2,960 at 9M 2023, but up 10.57% from Rp2,650 a year earlier at FY2022. No stock split has occurred since 2013, so no price adjustment is needed.
| Market cap → enterprise value | FY2023 |
|---|---|
| Share price (period-end) | Rp2,930 |
| Shares outstanding | 41,524,501,700 |
| Market capitalization | Rp121.67 trillion (~$7.89B) |
| Plus: interest-bearing debt | Rp62,919 million |
| Less: cash and equivalents | Rp4.07 trillion |
| Enterprise value | Rp117.66 trillion (~$7.63B) |
| Peer-multiple sanity check | 9M 2023 | FY2023 | Change |
|---|---|---|---|
| Trailing P/E | ~37.31x | ~35.75x | ✅ down |
| EV/EBITDA | ~15.25x | ~14.55x | ✅ down |
| P/B | ~10.14x | ~8.41x | ✅ down |
Trailing P/E (using FY2023's own reported net income attributable to owners of Rp3,403,657 million - a real full-year figure, not an approximation, since this filing's period-end coincides with the fiscal year-end) fell as 19.20% earnings growth outpaced the roughly flat share price. EV/EBITDA (against full-year EBITDA of approximately Rp8,086,174 million) fell since the cash pile grew faster than the market cap this quarter. P/B (book value of approximately Rp14,473,429 million equity attributable to owners ÷ 41.52 billion shares) fell as equity attributable to owners grew 28.98% for the full year (helped by the additional paid-in capital effects of subsidiary MIDI's rights issue flowing through the "differences in value of transactions of non-controlling interests" line), outpacing the roughly flat share price.
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, for the same reason as prior posts: 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. 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, unchanged from 9M 2023's window since both the low (February 2022) and the high (November 2022) still sit inside the trailing 24 months.
PT Sumber Alfaria Trijaya Tbk's audited consolidated financial statements as of December 31, 2023 and for the year then ended; the Company's corresponding investor presentation as of December 2023.