Alfamart Q2 2025 presentation highlights 7.8% revenue growth, expanding market share

Introduction & Market Context

PT Sumber Alfaria Trijaya Tbk (IDX:AMRT), operator of Indonesia’s second-largest minimarket chain Alfamart, revealed solid financial performance in its June 2025 management presentation despite signs of slowing consumer confidence in the Indonesian market. The company’s results come as consumer sentiment shows deceleration in May-June 2025, with the consumer confidence index ending at 117.5 in June.

As shown in the following chart, consumer sentiment remains cautiously optimistic despite recent deceleration:

The presentation highlighted the continued importance of minimarkets in Indonesia’s retail landscape, with the channel maintaining a 37.6% market share in the first half of 2025. While this represents a slight decrease from 38.3% in the same period last year, minimarkets continue to be a crucial retail channel alongside general trade (51.9%) and super/hyper markets (10.5%).

Financial Performance Highlights

Alfamart reported strong financial results for the first half of 2025, with revenue reaching IDR 63,813 billion, a 7.8% increase compared to IDR 59,219 billion in 1H24. Gross profit grew at an even faster pace, up 9.5% year-over-year to IDR 13,985 billion, with gross profit margin expanding to 21.92% from 21.57% a year earlier.

The company’s detailed financial highlights for Q2 and 1H 2025 are illustrated in the following table:

While operating income increased by 2.1% to IDR 2,366 billion for the half-year period, it declined by 5.4% in Q2 alone, suggesting some margin pressure in the most recent quarter. Nevertheless, net profit attributable to owners grew by 5.0% to IDR 1,884 billion for 1H25, though net profit margin contracted slightly to 2.95% from 3.03% in the prior year period.

The company’s longer-term financial performance demonstrates consistent growth across key metrics, with a five-year compound annual growth rate (CAGR) of 11.74% for revenue, 13.26% for gross profit, and an impressive 25.59% for net profit.

Alfamart maintains a strong balance sheet with zero debt and a negative net gearing ratio of -0.27x as of June 2025, indicating substantial cash reserves relative to debt. However, the company’s return metrics have declined slightly, with Return on Average Assets (ROAA) at 4.81% for YTD Jun-25 compared to 5.17% in the same period last year, and Return on Average Equity (ROAE) at 11.35% versus 12.20% a year earlier.

Market Share and Competitive Positioning

Alfamart continues to strengthen its market position in Indonesia’s competitive retail landscape. The company’s market share in Indonesia increased from 13.0% in YTD Jun-24 to 13.5% in YTD Jun-25. More impressively, its share of the Modern Trade segment grew from 26.3% to 28.0%, while its share of the MT Minimarket segment expanded from 34.5% to 35.9% during the same period.

The company remains the second-largest minimarket operator in Indonesia with 20,673 stores as of June 2025, compared to market leader Indomaret’s 23,242 stores. Other competitors in the minimarket segment include Alfamidi (2,416 stores), Circle K (488 stores), and Lawson (360 stores).

Regional performance varied significantly across Indonesia, with Sulawesi leading growth at 6.1% while East Java experienced a decline of 4.4%. Other Islands showed solid Modern Trade growth at 5.1%, despite negative growth in Java (-1.2%) and Sumatra (-0.5%).

Expansion Strategy

Alfamart continues to expand its store network, which reached 23,872 total stores as of June 2025, consisting of 18,080 owned stores and 5,792 franchise locations. The company added a net of 595 new stores during the period, with a geographical focus on Greater Jakarta (35.8% of total stores) and Java (39.7%), though management noted the "growing potential in Outer Islands" for future expansion.

The following chart illustrates Alfamart’s store network composition:

To support its growing store network, Alfamart has expanded its distribution infrastructure to include 48 warehouses (serving Alfamart, Alfamidi, and Dan+Dan), 24 depos, and 19 store hubs strategically located across Indonesia. The company plans to continue expanding its distribution center network to enhance supply chain efficiency and drive long-term operating expense optimization.

Digital Transformation

Alfamart’s digital transformation efforts are yielding significant results, with online sales now accounting for approximately 8% of total revenue and growing by around 34% year-over-year. The company has designated approximately 3,000 stores as delivery points to support its e-commerce operations.

The company’s loyalty program, Alfagift, serves as a central pillar of its omnichannel strategy. The platform has 22 million total members, with 14.6 million active members (a 19% year-over-year increase) who generate 57% of total revenue. Notably, customers spend more than twice as much per transaction online compared to offline purchases.

Sustainability Initiatives

Alfamart has implemented several Environmental, Social, and Governance (ESG) initiatives. On the environmental front, the company has installed solar panels in 32 branches and 2 stores, resulting in a reduction of approximately 3,085 tons of CO2 emissions year-to-date. Its Alfamidi brand has also deployed solar panels in 7 branches and 18 Super stores, reducing emissions by about 596 tons.

The company has made progress in reducing plastic bag usage, with plastic bag transactions declining to 34.7% in Alfamart and 23.0% in Alfamidi during the first half of 2025. Alfamart also promotes workforce diversity through its Alfability program, which employs 1,360 individuals with disabilities across its operations.

The following image highlights Alfamart’s key sustainability initiatives:

Forward-Looking Outlook

While Alfamart continues to show strong growth and market share gains, the company faces challenges from slowing consumer confidence and regional variations in growth. The company’s strategy appears focused on three key pillars: continued store network expansion (particularly in high-potential Outer Islands), enhancement of its digital capabilities, and strengthening of its distribution infrastructure.

With its debt-free balance sheet, expanding market share, and investments in both physical and digital infrastructure, Alfamart appears well-positioned to navigate the current market environment despite some margin pressure evident in its most recent quarterly results.

The stock of PT Sumber Alfaria Trijaya Tbk (IDX:AMRT) closed at IDR 1,875 on September 29, 2025, up 0.27% for the day, and remains significantly above its 52-week low of IDR 1,730 while trading below its 52-week high of IDR 3,650.

Full presentation:

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