Net sales slightly decreased by 1.3% y-o-y from Rp 2.08 trillion to Rp 2.05 trillion. Domestic market started to show a recovery amidst low consumer purchasing power and tough market competition. Export market managed to grow by 11.8% y-o-y. Hair care category decreased by 6.2 % y-o-y due to sluggish performance from hair styling and hair color products. Skin care & makeup grew by 6.5% y-o-y driven by decorative makeup especially lips make up which grew in high double digit, thanks to PIXY Lip Cream. Meanwhile base makeup and skin care had shown a decline due to tough market competition. The capital expenditure in 2018 is estimated at around Rp200 billion.
Statements of Income Rp Billion 9M2018 9M2017 Balance %Growth Net Sales 2.048.795 2.076.502 (27.707) -1,3% COGs 1.317.690 1.298.734 18.956 1,5% Gross Profit 731.105 777.768 (46.663) -6,0% Operating Expenses 555.630 581.735 (26.105) -4,5% Operating Income 175.474 196.034 (20.560) -10,5% Net Income 150.327 161.636 (11.309) -7,0% Comprehensive Income 180.944 139.941 41.003 29,3% Basic Earnings per Share (in Rp) 748 804 (56) -7,0% Statements of Financial Position Rp Billion Sep 30, 2018 Dec 31, 2017 Balance %Growth Current Assets 1.336.839 1.276.479 60.360 4,7% Non-Current Assets 1.096.806 1.085.328 11.478 1,1% Total Assets 2.433.645 2.361.807 71.838 3,0% Current Liabilities 252.082 259.807 * (7.725) -3,0% Non-Current Liabilities 224.730 243.674 (18.944) -7,8% Equity 1.956.833 1.858.326 98.507 5,3% Total Liabilities & Equity 2.433.645 2.361.807 71.838 3,0% Net Working Capital 1.084.757 1.016.672 68.085 6,7% Issued Shares (in number of shares) 201.066.667 201.066.667 201.066.667 Statements of Cash Flows Rp Billion 9M2018 9M2017 Balance %Growth Capital Expenditure 133.212 76.524 56.688 74,1% * Change due to account reclassification
Net Sales by Geographical Segment Rp Billion 9M2018 9M2017 Balance %Growth Domestic 1.491.685 1.578.188 (86.503) -5,5% Export 557.110 498.314 58.796 11,8% Net Sales by Category Rp Billion 9M2018 9M2017 Balance %Growth Men's 1.073.414 1.104.263 (30.849) -2,8% Women's 922.207 946.764 (24.557) -2,6% Others 53.174 25.475 27.699 108,7% Net Sales By Segment Rp Billion 9M2018 9M2017 Balance %Growth Skin Care & Make Up 754.769 708.421 46.348 6,5% Hair Care 878.327 936.371 (58.044) -6,2% Fragrance 369.845 410.012 (40.167) -9,8% Others 45.854 21.698 24.156 111,3%
282,497 257,566-9.8% 27.2% 448,752 477,751 6.5% 72.8% -6.2% 621,066 539,640 9M2017 9M2018 Domestic Export Hair Care Skin Care & Makeup Fragrance
MID-5 Challenge, Change, Innovation The year 2018 is the second year of the Stage 5 of the 3-Year Middle Range Management Planning (MID-5) which will end in 2019. The theme which will be used in MID-5 is Challenge, Change, Innovation. For that purpose, the Company will make effort to achieve this target by strengthening sales, domestic and international, through development of new products, expansion of distribution area, productivity improvement, and identification of new business categories which can support the Company s expansion.
Hair Care Expands Product Variety As of 9M2018 Hair Care decreased by 6.2% compared to previous year. Though hairstyling and hair color slightly decreased, pomade still managed to show a positive growth amidst lots of new comers in the market. Hair care such as hair vitamin still showing positive performance during the period. In order to strengthen this category, the Company had launched new hair care products namely Mandom Scalp Activator Tonic. This is a hair care product which function to nourish and prevent hair loss. Further detail is available on Instagram @scalpactivatorid and Facebook: Scalp Activator Indonesia. Activities in 2018 New Product : Mandom Scalp Activator Tonic Hairstyle Tutorial on Website GATSBY s booth provide free haircut for consumer
Skin Care & Makeup Beats the market with new products Skin care & makeup grew by 6.5% compared to previous year, thanks to decorative makeup as the driver of this growth. Meanwhile, base makeup and skin care slightly declined due to tough competition in the market. The natural make-up trend with finishing look which gives the impression of a healthy and glowing skin has inspired PIXY to introduce its latest series namely PIXY Make It Glow which consist of Silky Powdery Cake, Beauty Skin Primer and Dewy Cushion. While for Men s skin care category, GATSBY is continuing its market penetration for GATSBY Facial Micro Foam through several below the line activities such as joining concerts and youth festival. During the event, GATSBY provides free face washing for consumer to feel the experience of face washing with facial micro foam. Activities in 2018 PIXY Make it Glow Launching PIXY 4 Beauty Benefits New Men s Skin Care Product : GATSBY Facial Micro Foam
Fragrance Ignite Consumer Purchasing Power by Launching New Products As of 9M2018 fragrance decreased by 9.8% compared to previous year. The decline is in line with fragrance market in general which also showing sluggish performance. Low consumer purchasing power and lack of consumer loyalty were still the main issues in this category. However, as one of the biggest brand in this market, the Company continuously strives to ignite consumer purchasing power by launching new products. As of 9M2018 GATSBY had launched several fragrance products such as GATSBY Urban Ice Deo Series and GATSBY Ultra Prime Series. While for women s market, PUCELLE already launched PUCELLE Icy Gel Cologne. Adding to that, both GATSBY and PUCELLE also will launch several new products in 4 th quarter 2018. Activities in 2018 Pucelle Icy Gel Cologne New Products GATSBY Urban Ice Deo Series New Products GATSBY Ultra Prime Series
Return on Equity Return on Assets EBITDA Margin 27,8% 23,1% 32,2% 8,3% 8,8% 7,7% 6,6% 6,9% 6,2% 14,7% 14,7% 14,8% Earning per Share BVPS Dividen Yield 2264 718 804 748 Rp8.135 Rp8.687 Rp9.153 Rp9.731 2,1% 2,2% 2,1% 2,3% *stock price : Sep 30
CORPORATE SECRETARY/ PR-INVESTOR RELATIONS Alia Dewi/Reza Azianur P: 62-21-2980 9500 F: 62-21-2980 9501 E: corporatesecretary@mandom.co.id W: www.mandom.co.id DISCLAIMER This report contains certain statements of future expectations and other forward-looking statements, including those relating to our general business plan and strategy, our future financial condition, and growth prospect. Forward-looking statements involve risk and uncertainty which could cause actual results and development to differ materially from those expressed or implied in these statements. All opinions and estimations included in this report constitute our judgment as of the said period and are subject to change without prior notice. Mandom Indonesia does not guarantee that any actions, which should have been taken in reliance on this report will bring specific result as expected.