Blibli Loses IDR 5,53 Trillion in 2022, Continues to Drive Cost Efficiency

PT Global Digital Niaga Tbk (IDX:BELI) or Blibli recorded a net loss of IDR 5,53 trillion throughout 2022, or up 65% from IDR 3,35 trillion in 2021. This increase in losses was due to Blibli's cost of revenue swelling to IDR 14,04 trillion from the previous year IDR 8,27 trillion.

The company's net income rose 72,3% to IDR 15,26 trillion from IDR 8,85 trillion in 2021. The largest revenue came from the online retail segment IDR 10,42 trillion (up 38,71%), physical stores IDR 3,58 trillion (up 299,25% .2,47%), and institutions of IDR 1,22 trillion. From this revenue, the company recorded a gross profit of IDR 111 trillion, up 580% from the previous IDR XNUMX billion.

However, there are a number of expenses whose value exceeds the gross profit figure. Among them, the cost of sales was IDR 14,04 trillion, general and administrative expenses IDR 3,37 trillion, other expenses IDR 50,41 billion, and other income IDR 92,08 billion. The business loss reached IDR 5 trillion or increased from a loss of IDR 3,78 trillion in 202.

GoTo divestment

Blibli's performance is still in the red, causing total assets to fall to IDR 14,07 trillion from the previous IDR 18,38 trillion. The reason was that debt payments to a number of banks resulted in a decrease in cash and cash equivalent assets to IDR 3,07 trillion from the previous IDR 4,9 trillion.

Then, there was a decrease in investment assets to IDR 1,97 trillion from IDR 4,8 trillion because Blibli sold all its investment assets in GoTo shares. Liabilities also fell to IDR 3,59 trillion from IDR 8,3 trillion. Even though total assets and liabilities have fallen, Blibli says it still has positive so there is runway sufficient for further operations.

Blibli Co-Founder and CFO Hendry said that last year all of the company's business segments grew rapidly above industry trends, accompanied by healthier financial performance. According to him, this is the result of continuous efforts through several strategic steps, including expanding product choices, developing ecosystems, and implementing cost efficiencies in various areas to obtain a better cost structure.

For this year, management plans to improve its financial condition by implementing cost efficiencies in various areas to obtain a better cost structure. This is done by focusing on cost leadership strategies (cost leadership), margin optimization, and ecosystem operational excellence.

He believes this strategy is the right path to develop the business further and at the same time, bring the company closer to profitability. "Meanwhile, the cash position and credit facilities we currently have are sufficient to finance all future business strategies," he said in an official statement, yesterday (30/3).

Strengthen omnichannel

The company's management also conveyed plans to strengthen potential synergies within the ecosystem to encourage cross-selling (cross-selling) between platforms, as well as strengthen omnichannel strategy through wider expansion of physical stores.

It is believed that this strategy allows the company to grow more efficiently by reducing advertising and marketing costs, as well as reducing customer acquisition costs.

The latest information was conveyed, the company was appointed as one of the key strategic partners in Indonesia by the global brand Apple, to complement the long-term relationships that have previously existed with several other leading global brands, including Samsung. This will be a driver of positive growth for the 1P Retail business in the future.

As of the end of 2022, the company has opened 74 stores consumer electronics, bringing the number of stores operated to 126 stores. In detail, 79 single-brand stores (monobrand), such as Samsung Experience Store, hello (Apple's single-brand store), and others; 47 multi-brand stores (multibrand), such as Blibli Store and Tukar Add, and 70 premium supermarket outlets nationwide.