PT Sarimelati Kencana Tbk, famous for its Pizza Hut restaurant chain, continues its business expansion throughout Indonesia with a total capital expenditure (Capex) of IDR300 billion this year. The company has absorbed 45% of the Capex in 2022.
Established in 1987, Sarimelati is a subsidiary of PT Sriboga Raturaya and is the franchisee of YUM! International in Indonesia. Pizza Hut itself is an internationally chained restaurant originating from the US, which was founded in 1958.
In 2004, Sriboga acquired Sarimelati and since the acquisition, the latter has grown rapidly. Sriboga remains the major shareholder with 64.79% of shares, followed by the public at 24.65%, the Scottish Oriental Smaller Companies Trust Plc at 7% and Albizia Capital Pte Ltd at 5.56%.
Sarimelati Corporate Secretary Kurniadi Sulistyomo said the company was expanding its business. It would open 42 new outlets to help the company reach sales target of IDR3.4 trillion.
With the addition of 42 new outlets and the closure of several outlets, the total number of Pizza Hut and PHD (Pizza Hut Delivery) outlets managed by the company as of August 7, 2022, reached 577 outlets.
“We have absorbed 45% of the total Capex of IDR300 billion that will be used to open new restaurants,” Sulistyomo said.
The company was upbeat that sales would increase this year. Its net sales reached IDR852.81 billion in Q1 2022, an increase from last year’s same period of IDR713.93 billion. Meanwhile, its profits reached IDR2.34 billion, a decrease from last year’s IDR4.87 billion. On the other hand, the company posted a net profit of IDR60.76 billion.
Facing the second semester of 2022, Sulistyomo said the company would be more careful in looking at business prospects, especially due to unstable raw material prices and the implementation of the 11% value added tax (VAT).
During the 2020 COVID-19 pandemic, Pizza Hut chain in Indonesia suffered IDR94 billion in losses. According to the company, the loss was a contrast to 2019 in which it posted IDR200.02 billion profit. Based on the Indonesia Stock Exchange (IDX) data, the company recorded sales of IDR3.46 trillion in 2020, a 13.25% decrease from the previous year with IDR3.99 trillion. The company said it has yet fully recovered from the impact of the COVID-19 pandemic.