Indonesian Ikea partner Hero Supermarket soars on profit jump

PT Hero Supermarket which March this year won the rights to franchise Swedish furniture giant IKEA stores in Indonesia, surged as much as 21.89 percent on Thursday after it reported nine-month earnings, which showed a increase in revenue to Rp 7.8 trillion (US$808 million) in the third quarter and a rice in Gross profits of 16.6 percent to Rp 1.8 trillion

“Not inclusive of the pre-opening costs of IKEA, net profits went up by 21.6 percent compared to the same period in the previous year due to the increase in sales and improvements in productivity taking place within the organization,” a press release issued by the retailer announced.

Hero is currently constructing the IKEA flagship store in Alam Sutra, Tangerang.

Hero Supermarket president director Philippe Broianigo, said that the retailer was upbeat about introducing the first IKEA store in 2014.

“So far, store expansions are going as scheduled and we expect to open more new supermarkets in the fourth quarter of this year,” he said through a release.

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