DFI Retail Group subsidiary PT Hero Supermarket swung to a loss last year, attributed to lower Ikea profit and lower gains from property divestments.

PT Hero Supermarket’s loss stood at Rp132 billion (US$8.5 million) as slow home furnishing market recovery and a downturn in the residential property sector negatively affected the Ikea business.

However, net revenue increased 15 per cent to Rp5.10 trillion, thanks to the impact of the annualisation of new store openings in the prior year.

Meanwhile, Guardian Health and Beauty booked double-digit like-for-like sales growth due to traffic recovery in stores at premium malls and tourist destinations.

The company said it is executing initiatives such as space optimisation for some larger stores, cost control, and inventory management for Ikea and developing new formats and cost control for Hero Supermarket, to improve financial performance.

Last year, PT Hero Supermarket divested three non-core assets, which helped improve its financial position. Subsequently, the company sold two additional non-core properties in January.

PT Hero Supermarket operates Hero hypermarkets and supermarkets, Guardian Healthy & Beauty Stores and Ikea in Indonesia.

Earlier, DFI Retail Group reported an annual attributable profit of US$32 million and revenue of US$9.17 billion.