AMRT Why Did Growth Vanish the Moment Q1 Ended?

The Six-Month Number Was Carrying Q1's Weight

This is PT Sumber Alfaria Trijaya Tbk's unaudited interim consolidated financial statements for the six months ended June 30, 2025, authorized for issue by the Board of Directors on July 29, 2025. Net revenue rose 7.76% to Rp63,812,732 million, from Rp59,219,133 million, and net income attributable to owners rose 4.99% to Rp1,883,809 million, from Rp1,794,307 million (see Key Financial Metrics) - both real growth, but both markedly slower than Q1 2025's own 11.75% and 9.53% pace.

Isolating the standalone second quarter (H1 2025 minus the already-reported Q1 2025) shows why the six-month blend looks softer: revenue growth for the quarter alone slowed to 3.84%, operating income fell 5.39% year-over-year, and net income was essentially flat at +0.52%. The driver isn't a single bad line - it's Jabodetabek, the company's largest and most mature market. Standalone Q2 shows Jabodetabek's segment revenue falling 5.03% and its segment income falling 34.42% year-over-year, its first standalone revenue decline this site has recorded, not just an income squeeze (see Segment Performance). Java (excl. Jabodetabek) also posted a standalone income decline, smaller but real. Only Outside Java kept growing on both lines. Q1's strength across all three segments didn't continue into Q2 - it reversed for two of the three.

The Prescription

Outside Java is now the only one of Alfamart's three geographic segments growing on both revenue and income in the standalone second quarter, and it did so while carrying a margin roughly four points above Jabodetabek's (5.98% vs. 1.96% - see Segments Compared). Management should treat this quarter's numbers as confirmation, not noise: capital and new-store allocation should keep tilting toward the region that's actually compounding, rather than defending share in a Jabodetabek market that just posted its first standalone revenue decline this site has tracked. What the company should stop doing is treating the "Beban usaha yang tidak dapat dialokasikan" (unallocated operating expenses) line as a black box - it grew 9.39% standalone this quarter against a shrinking combined segment income (-1.55%), meaning overhead is now eating into a business that's contracting at the segment level, not just growing slower than overhead. A filing detailed enough to itemize a Rp7,556 million related-party payable to a single vehicle-rental affiliate has the disclosure muscle to say one sentence about why the capital region's revenue - not just its margin - is now shrinking.

Key Financial Metrics

H1 2025 vs. H1 2024 (P&L and cash flow), June 2025 vs. December 2024 (balance sheet) - consolidated, unaudited

FX: IDR 16,233 = USD 1 (the exchange rate at the reporting date, per the filing's own monetary-assets-in-foreign-currency note).

Metric	H1 2025 (IDR)	H1 2025 (USD)	H1 2024 (IDR)	YoY
Net Revenue	Rp63,812,732M	~$3,931.3M	Rp59,219,133M	✅ +7.76%
Gross Profit	Rp13,985,443M	~$861.6M	Rp12,773,661M	✅ +9.49% ✅ margin 21.92% vs 21.57%
Income from Operations ("Operating Income")	Rp2,366,206M	~$145.8M	Rp2,317,813M	✅ +2.09% ⚠️ margin 3.71% vs 3.91%
Income Before Final Tax and Corporate Income Tax	Rp2,392,074M	~$147.4M	Rp2,324,681M	✅ +2.90%
Income for the Year (total, incl. non-controlling interests)	Rp1,956,129M	~$120.5M	Rp1,860,121M	✅ +5.16%
Net Income (attributable to owners)	Rp1,883,809M	~$116.1M	Rp1,794,307M	✅ +4.99% ⚠️ margin 2.95% vs 3.03%
EPS	Rp45.37	~$0.0028	Rp43.21	✅ +5.00%
EBITDA» (Operating Income + D&A)	Rp4,564,651M	~$281.2M	Rp4,341,091M	✅ +5.15% ⚠️ margin 7.15% vs 7.33%

Balance sheet metric	Jun 2025 (IDR)	Jun 2025 (USD)	Dec 2024 (IDR)	Change
Total Assets	Rp39,491,795M	~$2,433.2M	Rp38,798,382M	✅ +1.79%
Total Liabilities	Rp21,353,354M	~$1,315.5M	Rp21,102,439M	⚠️ +1.19%
Total Equity (attributable to owners)	Rp16,821,010M	~$1,036.2M	Rp16,377,674M	✅ +2.71%
Total Cash (incl. time deposits)	Rp4,536,171M	~$279.5M	Rp4,895,208M	⚠️ -7.33%

Every mandatory profit metric grew year-over-year on the six-month cumulative basis, but every margin except gross profit compressed slightly - operating margin to 3.71% from 3.91%, net margin to 2.95% from 3.03%, EBITDA margin to 7.15% from 7.33%. That's the same shape Q1 2025 showed, just a touch more pronounced, and it's consistent with the standalone-quarter deceleration detailed in Segment Performance below.

"Adjusted EBITDA^»" remains a metric Alfamart doesn't report; the EBITDA line above is Income from Operations plus depreciation and amortization (Rp2,198,445M for H1 2025, versus Rp2,023,278M for H1 2024, per the segment note).

Free cash flow (net cash from operating activities minus capex - "acquisition of fixed assets" only, same basis as prior posts): rose 80.24% to +Rp2,859,281M, from +Rp1,586,642M a year earlier. Net cash from operating activities grew 43.49% to Rp3,951,967M (from Rp2,754,154M), while capex on fixed assets fell 6.41% to Rp1,092,686M (from Rp1,167,512M). Unlike Q1 2025's surge - which came from suppliers financing an inventory build - this half's inventory (Rp11,835,382M, +0.51% vs. Dec 2024) and trade payables to third parties (Rp12,249,615M, -6.24% vs. Dec 2024) both moved modestly, so the working-capital swing that drove Q1 didn't repeat. Instead, the direct cash flow statement shows "cash receipts from other operating activities" jumped to Rp1,507,260M from Rp178,109M a year earlier - a more than eightfold increase with no itemized breakdown anywhere in the notes (see Beyond the Usual).

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): exactly zero at June 30, 2025, unchanged from every quarter since 9M 2024. The Group's short-term bank facilities again show a zero balance at both period-ends, continuing the pattern flagged in Q1 2025 of heavy intra-period revolving activity that nets to nothing by the reporting date.

Key Operational Metrics

• Net revenue from franchises: Rp11,463,107 million, 17.96% of net revenue, versus Rp10,859,348 million (18.34% of net revenue) a year earlier - franchise revenue grew 5.56% YoY, slower than overall net revenue's 7.76%, so its share of the business fell again. This extends the reversal Q1 2025 first flagged (franchise share falling to 19.46% from 19.98% that quarter) - two consecutive quarters now, not a single-quarter wobble.
• Headcount: 97,735 permanent employees at June 30, 2025, up 2.18% from 95,648 at December 31, 2024 - growing roughly in line with the business, not a sign of aggressive expansion or a hiring freeze.
• Store network geographic mix: the investor presentation shows the network's store-count split shifting toward Greater Jakarta (35.8% of stores YTD Jun-25, up from 31.1% in 2020) and away from Outer Islands (24.5%, down from 28.4% in 2020), with Java holding steady near 40%. That's a notable contrast with Segment Performance below, where Outside Java is the fastest-growing and highest-margin segment on a revenue basis - store count is still concentrated where growth has now stalled, not where it's accelerating. Precise store counts and Nielsen market-share percentages weren't extractable in legible form from this quarter's presentation (chart-based, not tabulated); the next post with cleaner source data should re-establish exact figures.
• Customer and supplier concentration: the filing states plainly that no single customer accounted for more than 10% of net revenue in either H1 2025 or H1 2024 - a routine disclosure, included here because it's the same note that discloses the related-party purchase growth in Beyond the Usual.

Segment Performance

Alfamart reports the same three geographic segments as every prior post - Jabodetabek (greater Jakarta), Java excluding Jabodetabek, and Outside Java. The filing reports H1 2025 directly against H1 2024; the standalone second-quarter figures below are derived by subtracting each segment's already-reported Q1 2025 and Q1 2024 figures from this filing's six-month totals.

Six months ended June 30 (as reported):

Segment	External Revenue (H1 2025)	External Revenue (H1 2024)	YoY	Segment Income (H1 2025)	Segment Income (H1 2024)	YoY	Margin (2025 vs 2024)
Jabodetabek	Rp16,734,074M	Rp16,131,002M	✅ +3.74%	Rp448,582M	Rp495,997M	🔴 -9.56%	⚠️ 2.68% vs 3.07%
Java (excl. Jabodetabek)	Rp23,018,420M	Rp22,394,929M	✅ +2.79%	Rp1,386,246M	Rp1,351,553M	✅ +2.56%	⚠️ 6.02% vs 6.04%
Outside Java	Rp24,060,238M	Rp20,693,202M	✅ +16.28%	Rp1,510,753M	Rp1,296,185M	✅ +16.57%	✅ 6.28% vs 6.26%

Standalone Q2 (Q2 2025 vs Q2 2024, derived):

Segment	External Revenue (Q2 2025)	External Revenue (Q2 2024)	YoY	Segment Income (Q2 2025)	Segment Income (Q2 2024)	YoY	Margin (2025 vs 2024)
Jabodetabek	Rp7,627,605M	Rp8,031,741M	🔴 -5.03%	Rp149,421M	Rp227,885M	🔴 -34.42%	🔴 1.96% vs 2.84%
Java (excl. Jabodetabek)	Rp10,906,744M	Rp11,153,609M	🔴 -2.21%	Rp657,679M	Rp683,519M	🔴 -3.78%	⚠️ 6.03% vs 6.13%
Outside Java	Rp12,505,871M	Rp10,708,189M	✅ +16.79%	Rp747,558M	Rp667,772M	✅ +11.95%	⚠️ 5.98% vs 6.24%

The six-month view still shows Jabodetabek growing revenue (+3.74%), because Q1's own strength (+12.44% revenue growth, per Q1 2025) carries the half-year average. The standalone quarter tells a different story: Jabodetabek's revenue actually contracted 5.03% year-over-year, and its segment income fell 34.42%, pushing its margin down to 1.96% from 2.84% - by far the thinnest of the three segments and now visibly deteriorating rather than merely "the slowest grower." Java (excl. Jabodetabek) also posted a standalone revenue and income decline, though far milder. Outside Java is the only segment that kept accelerating on both lines, and did so with a margin roughly three times Jabodetabek's.

Segments Compared

On the six-month cumulative basis, combined segment income grew 6.42% (Rp3,143,735M to Rp3,345,581M) while unallocated overhead grew 18.58% (Rp825,922M to Rp979,375M) - overhead still outpacing the business, consistent with every quarter this site has tracked since Q3 2022. But the standalone second quarter is worse than either of those six-month figures suggests: combined segment income actually fell 1.55% (Rp1,579,176M to Rp1,554,658M) while unallocated overhead still grew 9.39% (Rp410,119M to Rp448,625M) - overhead growing against a shrinking segment-level base, not just a slower-growing one. Operating income for the standalone quarter fell 5.39% (Rp1,169,057M to Rp1,106,033M), and net income to owners was essentially flat at +0.52% (Rp903,993M to Rp908,692M) - the flat net-income reading only holds up because non-operating items (finance income, a smaller finance-cost increase, and the Group's share of associates) happened to offset most of the operating decline this quarter, not because the underlying business held steady.

Beyond the Usual

The rights issue mandate stays unaddressed for an eighteenth 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 eighteen consecutive filings, most recently Q1 2025. This filing was authorized for issue on July 29, 2025 - roughly 1,180 days (about 38.8 months) past the mandate's own May 6, 2022 regulatory deadline under OJK Regulation No. 32/POJK.04/2015 - and contains no reference anywhere to the rights issue having lapsed, been extended, been formally cancelled, or been replaced by a fresh shareholder approval. The issued share count remains unchanged at 41,524,501,700, the same figure disclosed at every quarter since the approval was granted.

A cash-flow line more than eightfolded with no breakdown offered

"Cash receipts from other operating activities" in the direct-method cash flow statement rose to Rp1,507,260 million for H1 2025, from Rp178,109 million a year earlier - an increase of 746%, and the largest single driver of this half's 43.49% growth in net cash from operating activities. No note in the filing itemizes what this line contains; it sits alongside clearly labeled receipts from customers, payments to suppliers, and payments for salaries and taxes, but the "other" category itself is never broken down anywhere in the 126 pages of notes. Whatever's inside it is real cash the business generated this half, but a reader has no way to judge whether it's likely to recur.

The Bank Aladin stake's paper loss narrowed for the first time this site has recorded

The Rp500,000 million stake in PT Bank Aladin Syariah Tbk, first flagged at H1 2022 and tracked through Q1 2025's 52.65% period-end reading, shows an accumulated unrealized fair-value loss of Rp255,882 million at June 30, 2025 - a 51.18% paper loss, narrower than Q1's 52.65% and the first period-end improvement this site has recorded for the stake since it first went underwater. The near-filing-date reading, based on a Rp825-per-share market price (up from the Rp800 used in the two prior filings), implies a carrying value of Rp242,647 million - a 51.47% loss from cost, also an improvement from Q1's 52.94% near-date reading.

Related-party purchases reached their highest share of total purchases this site has recorded, extending a multi-quarter trend: net purchases from related parties totaled Rp888,954 million for H1 2025, 1.78% of total net purchases - up from Rp615,971 million (1.30%) a year earlier, and above Q1 2025's 1.53% reading. The same six counterparties disclosed last quarter - PT Atri Distribusindo, PT Yamazaki Indonesia, PT Alfindo LF Makmur, PT Sinergi Global Indonesia, PT Benfood Eka Makmur Nusajaya, and PT Karakter Paloma Sejati - remain the named entities, with no new counterparty added this filing.

The related-party lease liability to PT Perkasa Internusa Mandiri ("PIM"), an entity under common control, fell to Rp73,312 million at June 30, 2025, from Rp77,528 million at December 31, 2024 - a 5.44% decline, reversing Q1 2025's 6.27% increase. The liability has now reversed direction in most quarters this site has tracked, still with no explanation offered in any filing.

Coverage Table

Metric	H1 2025	H1 2024	YoY	Why it matters
Net Revenue	Rp63,812,732M	Rp59,219,133M	✅ +7.8%	Slower than Q1 2025's own 11.75% pace
Net Income (to owners)	Rp1,883,809M	Rp1,794,307M	✅ +5.0%	Also slower than Q1's 9.53%
Jabodetabek segment income (standalone Q2)	Rp149,421M	Rp227,885M	🔴 -34.4%	First standalone revenue decline this site has recorded for the region
Combined segment income (standalone Q2)	Rp1,554,658M	Rp1,579,176M	🔴 -1.6%	Segment-level business actually shrank this quarter, not just slowed
Free cash flow	+Rp2,859,281M	+Rp1,586,642M	✅ +80.2%	Driven mostly by an unexplained cash-flow line, not working capital this time
Share price (quarter-end)	Rp2,390	-	✅ +16.6% vs Mar 2025	Partial recovery from the March selloff, still 28% below the Oct 2024 high
Rights issue disclosure	Zero mentions	Zero mentions	🔴 unchanged	Eighteenth consecutive silent filing, now ~1,180 days past deadline

Target Valuation Range

Enterprise value ~Rp94.71 trillion (~$5.83B), implying 11.16x EV/EBITDA and a trailing P/E of ~30.66x - fairly valued, tilting rich. The stock's recovery since the March selloff outpaced the standalone second quarter's actual deceleration, so the multiples got more expensive on a weaker quarter, not a stronger one.

Alfamart's shares closed at Rp2,390 on June 30, 2025 - up 16.59% from Q1 2025's Rp2,050 close, but still down 28.01% from the trailing two years' Rp3,320 high in October 2024. No stock split has occurred since July 2013, so no price adjustment is needed.

The price recovery happened faster than the business did, at least by the standalone second-quarter's own numbers (see Segments Compared):

Market cap → enterprise value	Q2 2025
Share price (period-end)	Rp2,390
Shares outstanding	41,524,501,700
Market capitalization	Rp99.24 trillion (~$6.11B)
Plus: interest-bearing debt	Rp0
Less: cash and equivalents	Rp4.54 trillion
Enterprise value	Rp94.71 trillion (~$5.83B)

Peer-multiple sanity check	Q1 2025	Q2 2025	Change
Trailing P/E	~26.33x	~30.66x	⚠️ up
EV/EBITDA	~9.22x	~11.16x	⚠️ up
P/B	~4.91x	~5.90x	⚠️ up

Market cap rose from Rp85.13 trillion (~$5.06B) at Q1 2025. Trailing P/E (using trailing-twelve-month net income to owners of Rp3,237,609 million: FY2024's Rp3,148,107 million, less H1 2024's Rp1,794,307 million, plus this half's Rp1,883,809 million) expanded as the share price rose 16.59% while trailing earnings grew only modestly - the multiple expanded by more than earnings growth alone would justify. EV/EBITDA (against trailing-twelve-month EBITDA of Rp8,490,070 million) and P/B (book value of approximately Rp16,821,010 million equity attributable to owners ÷ 41.52 billion shares) both rose the same way.

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 Rp2,050-Rp3,320 range across the trailing two years to this quarter-end (based on month-end closes) - a 38.25% peak-to-trough swing, unchanged from Q1 2025 since both the high (October 2024) and the low (March 2025) fall within the same window.

Every multiple this site tracks got richer this quarter even as the standalone-quarter fundamentals got weaker - the market appears to be pricing in a continuation of the March-selloff recovery rather than the segment-level deceleration this filing's own numbers show.

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